Analysts for this trailer manufacturer have increased their earnings estimates in the last 90 days, by seven cents per share, to $1.20, for the upcoming quarter.
Wabash National (WNC)
from Upside
A leading maker of semi-truck trailers, Wabash National (WNC) has a bright growth outlook. The company is expanding its product line, focusing on such faster-growing segments as dry van trailers and refrigerated trailers.
Wabash stands to benefit from pent-up demand because of an aging U.S. trailer fleet, lower fuel prices, and continued access to cheap financing. In 2014, the company shipped 57,350 new trailers, up 22%. Total industry trailer shipments are expected to increase 12% to nearly 305,000 units this year, on top of a 15% increase last year.
On December 31, Wabash’s order backlog hit $1.09 billion, up 54% from a year earlier.
Wabash has rallied 14% since reporting December-quarter results February 3. Per-share earnings surged 80% as sales jumped 15% to a quarterly record.
For 2015, consensus estimates project a 27% increase in per-share earnings to $1.13. Revenue is expected to climb 8%. Yet shares trade at only 16 times trailing earnings, about 7% below the three-year average. The Value score stands at 90, ranking the stock among the cheapest 10% of our research universe.
Considering Wabash’s earnings momentum and improved cash flow, its stock seems capable of climbing 20% in the year ahead. Wabash National is being initiated as a Best Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, March 2, 2015