Wabash National: A Shareholder-Friendly Company That Is Worth A Look

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WG Investment Research


  • Wabash National's stock has not performed well so far in 2018, and I believe that investors should expect for WNC shares to be extremely volatile over the next few quarters.
  • However, I believe that this shareholder-friendly company is worthy of investment dollars.
  • I am already long Wabash National, and I may add more WNC shares in the near future.
  • This idea was discussed in more depth with members of my private investing community, Going Long With W.G.. Start your free trial today »

Wabash National (NYSE:WNC) pre-announced its Q3 2018 results in early October and the stock fell by over 20%. The stock recovered after the initial dip, but shares are now trading back below the $13 level again.

ChartWNC data by YCharts

There are definitely risks to the story, but, as I previously described, Wabash National is worthy of investment dollars if your time horizon is longer than 12-18 months and if you are willing (and able) to stomach the volatility.

The New Normal - Volatility

Wabash National's stock has traded in a 52-week range of $12.25 to $26.54, which works out to a variance of $14.29 (yes, a number that is above the current stock price). The stock is trading at $12.86, so it is currently slightly above the 52-week low (5%), but significantly below the 52-week high (106%).

Management has failed to sell the market on Wabash National's near-term business prospects, but the broader market volatility is also coming into play. To this point, the stock fell by 20% in October when management lowered its full-year 2018 guidance (updated to an adjusted EPS range of $1.50-1.55 from a range of $1.94-2.00), but shares recovered in short order. However, the recent market turmoil has wrecked serious havoc and has pulled WNC shares back down by almost 20% over the last month alone.

Investors that put money to work in Wabash National today should expect for a bumpy ride through at least 2019, but, in my opinion, the risk/reward scenario makes the stock a long-term buy at current levels.

A Shareholder-Friendly Company That Is Trading At An Attractive Valuation

It would be an understatement to say that Wabash has been focused on returning capital to shareholders. To start, management has bought back almost 10% of the company's total shares over the last five years.

ChartWNC Average Diluted Shares Outstanding (Annual) data by YCharts

ChartWNC PE Ratio (TTM) data by YCharts

ChartWNC PE Ratio (TTM) data by YCharts

This article was written by

WG Investment Research profile picture
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long WNC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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