WAB’s $2.8B Volume and Earnings Beat Highlight High-Volume Stocks’ 166.71% Short-Term Gains

Westinghouse Air Brake Technologies (WAB) closed on August 11, 2025, with a 0.26% gain, trading at $0.28 billion in volume. The stock’s performance followed the company’s Q2 2025 earnings report, which highlighted a 15.8% year-over-year increase in adjusted earnings per share to $2.27, surpassing analyst estimates. However, GAAP revenue of $2.71 billion fell short of expectations, driven by supply chain disruptions and delayed locomotive deliveries in its Freight segment. Operating margins expanded to 17.4%, while cash flow from operations declined 11.1% year-over-year to $209 million, attributed to inventory buildup and delivery delays.

The company’s Transit segment delivered strong growth, with GAAP sales rising 8.7% year-over-year, supported by 13.9% growth in new equipment sales and 4.8% in aftermarket services. International operations outperformed North American counterparts, reflecting ongoing momentum in global markets. Strategic acquisitions, including the $3.5 billion purchase of Evident Inspection Technologies, were cited as catalysts for margin expansion and long-term sustainability initiatives. Management also noted a 12-month backlog of $8.21 billion, up 11.9% year-over-year, signaling near-term demand visibility.

A backtest of a strategy involving the top 500 high-volume stocks held for one day showed a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This underscores the potential of liquidity concentration in short-term trading, particularly in volatile markets, as high-volume stocks often exhibit stronger price momentum. The approach’s success highlights the interplay between market dynamics and liquidity-driven strategies in amplifying returns.