AIEQ0.200%
as of Jul 20
WAB
DefensiveWABTEC
Westinghouse Air Brake Technologies Corporation provides locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It operates in two segments, Freight and Transit. It offers diesel-electric and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products.
Close · 3M
+4.39%
Held by 2 AI ETFs
QRFT0.100%
as of Jul 8
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals2
Win rate100% (2/2)
Avg buy return+4.98%
AIEQ · New entry · 1d
weight 0 → 0.190% (new)·stock down 0.1% in the 30 days before
May 30·entry $256.01·now $257.85Fresh
+0.72%
since May 30
QRFT · New entry · 1d
weight 0 → 0.100% (new)·stock down 9.9% in the 30 days before
Mar 20·entry $236.06·now $257.85Drifting
+9.23%
since Mar 20
LQAI · Exit · 1d
The AI ETF likely divested WAB due to its high Price-to-Earnings (37.72) and Price-to-Book (3.28) ratios, which appear elevated for an Industrials company with moderate revenue growth and ROE, suggesting overvaluation relative to its fundamentals or sector peers. For retail investors, this highlights the importance of scrutinizing valuation metrics; ensure a company's financial performance truly justifies its market price, especially in sectors not known for hyper-growth.
weight 0.400% → 0 (exited)·stock down 0.0% in the 30 days before
May 12·entry $269.02·now $257.85
-4.15%
since May 12
LQAI · Weight decrease · 2d
The AI-managed ETF is likely reducing its weight in WABTEC due to concerns about its stretched valuation. The stock's high PER of 37.26 and PBR of 3.28 appear disproportionate to its moderate revenue growth and ROE, suggesting the AI perceives it as overvalued or finds more attractive opportunities elsewhere. For retail investors, a systematic weight reduction by an AI fund in a stock with high valuation multiples like WABTEC serves as a strong signal to conduct thorough due diligence, as it may indicate that the current price is not fully supported by underlying fundamentals.
weight 0.420% → 0.400% (-0.020 pp)·stock down 1.9% in the 30 days before
May 8·entry $265.71·now $257.85
-2.96%
since May 8
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 31
The AI ETF AIEQ recently initiated a new position in WABTEC, suggesting its algorithms perceive an attractive investment. This contrasts with the framework's "Fail" verdict, primarily due to concerns about the company's financial health and the lack of a margin of safety at current valuation levels.
- Circle of CompetenceThe business of providing equipment and services for freight and transit rail infrastructure offers unit economics stable enough for reasonable ten-year cash flow projections despite its cyclical nature.
- Economic MoatAs a leading global provider of mission-critical rail technology, WABTEC likely benefits from high switching costs, scale advantages, and a strong brand, constituting a durable economic moat.
- ManagementWithout data on capital allocation decisions, candor in shareholder communications, or insider ownership, management's adherence to value-investing principles cannot be assessed.
- Financial HealthThe provided current ROE of 10.98% falls short of the 10-year average target of 15%, and comprehensive historical data on profitability and debt was unavailable for a thorough assessment.
- Margin of SafetyThe elevated valuation multiples (PER 36.08, EV/EBITDA 33.0) indicate that the current price does not offer a sufficient margin of safety relative to a conservative estimate of intrinsic value.
While WABTEC operates within a predictable industry with an identifiable economic moat, the framework's assessment highlights concerns regarding its financial health and current valuation. Specifically, the provided ROE falls short of ideal metrics, and the high price multiples suggest an insufficient margin of safety for a value investor. Moreover, a full evaluation of management was not possible with the available data.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.