Sell Wabtec (WAB)?
Yes.
The $7 billion rail equipment manufacturer is not a growth stock. After a major investment cycle in rail equipment, over the last ten-plus years, the industry is slowing explains Hedgeye Industrials analyst Jay Van Sciver in the video above.
“What we’re seeing is a major down cycle and historically that has tended to crush Wabtec’s margins,” Van Sciver says. “We’re looking at the youngest railcar fleet of the post-war period,” he says. “That’s big. This is no minor cycle.”
Want more? Click here for the “3 Reasons to Sell Wabtec.”
