Wednesday, May 5, 2010

Wabco Holdings --- WBC

Today I'm doing some ting I seldom do, I'm going to double up on a stock because I just think it's the right thing to do. WABCO Holdings ( WBC ) is one of the world's leading providers of electronic braking, stability, suspension and transmission control systems for heavy duty commercial vehicles. WABCO products are also increasingly used in luxury cars and sport utility vehicles.

The stock continues to hit new highs and hit 9 new ones in the last 20 trading sessions but more importantly 4 of the recent 5 in a weak market. 30 day price appreciation has been 17.38% and the stock is still hitting 13 of 13 Barchart technical buy signals. The stock trades around 31.30 with a 50 day moving average of 29.67.

Wall Street has 6 buy recommendations with no holds or negative reports. Sales are expected to increase 21.70% this year and 17.90% next year. I'm having a hard time with EPS growth estimates of 230.00% this year, 75.00% next year and a 5 year compounded annual EPS growth of 15.00% a year. I can only hope.

Investor sentiment is very high with a vote of 184 to 7 that the stock will beat the market. Experienced investors agree with a solid vote of 90 to 1.

I hardly ever double up on a bet but here the numbers just keep getting better and better:
  • 100% Barchart technical buy
  • Analysts giving great sales and earnings growth estimates
  • Investor sentiment getting even higher.

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