WAB Shares Climb 0.74% on Supply Chain Resolution as $370M Trading Volume Drops 29.7% but Maintains Top 500 Liquidity Rank Amid Raised Guidance

On July 31, 2025, Westinghouse Air Brake Technologies (WAB) reported a 0.74% rise in its stock price, with a trading volume of $0.37 billion, a 29.71% decline from the previous day. The company’s Q2 earnings highlighted challenges in meeting revenue expectations due to supply chain disruptions delaying locomotive shipments. CEO Rafael Santana attributed the shortfall to a critical supply part issue but noted improved operating margins driven by cost management and a favorable product mix. Management confirmed the supply issue has been resolved and anticipates catching up on delayed deliveries by year-end.

WAB raised its full-year revenue guidance to $11.08 billion at the midpoint, a 1.8% increase from prior estimates, and lifted adjusted EPS guidance to $8.85. Analysts questioned management on potential rail merger impacts, international demand, and integration of recent acquisitions. Santana emphasized strong backlog coverage, robust international and domestic pipelines, and the accretive benefits of the Inspection Technologies acquisition. The company also highlighted opportunities in digital innovation, telematics, and international expansion as key growth drivers.

A backtest of a strategy purchasing top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return from 2022 to 2025, significantly outperforming the 29.18% benchmark. The strategy’s success was attributed to capturing momentum in high-liquidity stocks, despite recent market volatility. This underscores the potential of liquidity-focused approaches in aligning with short-term market dynamics.