Westinghouse Air Brake Technologies (WAB) is back in focus after securing multihundred-million-dollar locomotive deals with Union Pacific and CSX, updating its 2026 sales guidance and expanding its remaining share repurchase authorization.

The recent Union Pacific and CSX locomotive agreements, updated 2026 sales guidance in the US$12.19b to US$12.49b range, stepped-up buybacks and a dividend increase come as the share price has delivered a 30-day share price return of 11.52% and a 1-year total shareholder return of 36.69%, signalling firm momentum on both recent and longer-term views.

If deals like these have you thinking about where rail and infrastructure demand could spill over next, it might be worth checking our screener of 24 power grid technology and infrastructure stocks as another way to spot potential opportunities.

With Wabtec shares up strongly over 1 year, trading near US$256 and sitting about 10% below the average analyst price target, the key question is whether recent wins leave upside on the table or if markets are already pricing in future growth.

Most Popular Narrative: 2.7% Overvalued

Simply Wall St's most followed narrative puts fair value for Westinghouse Air Brake Technologies at about $249.42, slightly below the last close of $256.06, framing a tight gap between price and estimated worth.

Sustained global investment in rail infrastructure and modernization, especially in international markets like Africa, Asia, and Brazil, coupled with increasing passenger transit ridership, is expanding addressable demand for Wabtec's products and services, supporting long-term revenue growth and backlog visibility.

Want to see what kind of revenue path and profit profile are being used to justify that fair value, and how a richer earnings multiple fits in? The full narrative lays out the exact growth, margin, and discount rate assumptions that sit behind that small premium to today's price.

Result: Fair Value of $249.42 (OVERVALUED)

However, softer North American railcar demand and a smaller Freight backlog could still challenge those earnings assumptions if orders or backlog conversion slow further.

Next Steps

Ready for more investment ideas?

If you stop at one company, you risk missing ideas that fit your style even better, so use the screener to pressure test and broaden your watchlist.

• Target value opportunities by scanning our list of 55 high quality undervalued stocks that combine quality fundamentals with prices that may sit below their calculated worth.
• Prioritise resilience by reviewing 81 resilient stocks with low risk scores that score well on financial stability and business risk factors.
• Spot early-stage potential by checking the screener containing 24 high quality undiscovered gems that the broader market may not be focusing on yet.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.