This mid cap stock is firing on all cylinders and just shot up to new highs on the heels of excellent guidance by management. I love these small to mid-sized companies that are hitting their stride because it seems like they are able to sustain strong growth for several quarters which leads to huge gains in their stock prices. Wabtec Corporation (WAB) is no different.
Investors Cheer Guidance
Earlier this week, WAB said it expects 2011 first quarter earnings per diluted share to be between 77 and 82 cents, and the company increased its 2011 full-year earnings per diluted share guidance to between $3.15-$3.25, based on full-year revenue growth of about 15 percent. Previously, the company’s full-year guidance was for earnings per diluted share of about $2.90 and revenue growth of about 10 percent.
Albert J. Neupaver, Wabtec’s president and chief executive officer, commented: “Our financial performance in the first quarter and for the year will exceed our initial expectations due to several factors: The strength of the U.S. freight rail market, especially demand for new freight cars; recent contract bookings for significant projects and others we expect to announce soon; ongoing progress in implementing our growth strategies; and the benefits of continuous improvement initiatives through the Wabtec Performance System.”
The Chart
I love charts that have a clear breakout from a long base on heavy volume. I think it has more room to go before it is even overbought on a short-term basis. At that point, which I would peg at around $70, I think the stock would consolidate a bit and then work its way ever higher. Based on the excellent combination of technicals and fundamentals, I think the stock could hit $80 in a year’s time.
Getting Technical: Earnings Carrying This Stock to New Highs is an article from: 
