Wabtec shares, which yield 0.7%, fetch 18.8 times their 2018 earnings estimate, versus a five-year average of 21.6, according to FactSet. Wabtec ’s merger with GE Transportation , first announced in May , is near to closing , and has the potential to create a major rail - equipment entity . Concerns regarding Wabtec ’s entry into the highly cyclical locomotive sector have largely been assuaged , with analysts pointing to the changing nature of the locomotive delivery cycle , and the fact that the most recent cycle hit its peak in 2015 and its bottom last year . Wabtec will be able to provide components to GE , which will boost after - market revenues . Almost $ 3bn is expected to be added to GE ’s debt to fund the merger .
Wabtec ’s merger with GE Transportation , first announced in May , is near to closing , and has the potential to create a major rail - equipment entity . Concerns regarding Wabtec ’s entry into the highly cyclical locomotive sector have largely been assuaged , with analysts pointing to the changing nature of the locomotive delivery cycle , and the fact that the most recent cycle hit its peak in 2015 and its bottom last year . Wabtec will be able to provide components to GE , which will boost after - market revenues . Almost $ 3bn is expected to be added to GE ’s debt to fund the merger .