5 Best Railroad Stocks to Invest In

4. Westinghouse Air Brake Technologies Corporation (NYSE:WAB)

Number of Hedge Fund Holders: 40

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) is one of the oldest rail manufacturers in the world. The company builds freight locomotives and provides other components and services for this segment as well. Additionally, it also manufactures passenger trains. It was set up in 1869 and is headquartered in Pittsburg Pennsylvania.

Atlantic Equities set a $101 share price target for Westinghouse Air Brake Technologies Corporation (NYSE:WAB) in May 2022, as it outlined that the company is a global leader in its industry and is poised for strong growth. Insider Monkey scanned 912 hedge fund portfolios for the first quarter of this year to discover that 40 had invested in the company.

Looking at the future, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) is already on the road to electrification after having partnered with General Motors. The company will roll out its first electric railcars next year. When combined with the current high fuel prices, the shift to electric is a second attractive reason to consider Westinghouse Air Brake Technologies Corporation (NYSE:WAB).

By the end of its fiscal Q1, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) had earned $1.9 billion in revenue and $1.13 in non-GAAP EPS, beating Wall Street EPS estimates but missing them for revenue. The company announced in June 2022 that it had entered into an agreement with a large Canadian rail company to deploy a management system.

Richard S. Pzena’s Pzena Investment Management is Westinghouse Air Brake Technologies Corporation (NYSE:WAB)’s largest investor. It holds 9.9 million shares that are worth $961 million.