High Speed Rail Investment - Wabtec

The massive high speed rail projects are worth $8 billion and have attracted companies with high speed rail technologies world-wide.  The third high speed rail related company is Wabtec(NYSE:WAB), the  Pennsylvania based manufacturer of a broad range of products for locomotives, freight cars and passenger transit vehicles.  


Wabtec owns 50% market for braking-related equipment in North America and makes freight cars as well as train-control electronics.  In addition the company is converting ordinary rail cars to become high-speed ready.  With the company's leadership in rail-car brake, it probably won't benefit too much from the construction of the high speed rail but should see more businesses coming when the high speed rails began operation.


Traded at $51.17 the Wabtec is worth market cap of $2.45 billion.  After falling to 5 year low of $24 per share in 2009, shares of Wabtec have doubled and is currently at 52 weeks high.  The technical chart points to more upside with 50 day moving average above 200 day moving average.  Cash flow also shows positive sign as the Wabtec has been buying its own shares in the latest quarter.