5-Star Stocks Poised to Pop: IPG Photonics
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fiber-based laser and amplifier maker IPG Photonics (NAS: IPGP) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at IPG's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Oxford, Mass. (1990)|
|Market Cap||$2.2 billion|
|Industry||Electronic manufacturing services|
|Trailing-12-Month Revenue||$497.7 million|
|Management||Founder/Chairman/CEO Dr. Valentin Gapontsev|
CFO Timothy Mammen
|Return on Equity (average, past 3 years)||16.6%|
|Cash/Debt||$395.5 million / $27.5 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 1,428 members who have rated IPG believe the stock will outperform the S&P 500 going forward.
I believe they are still in the early stages of fiber laser adoption for industrial manufacturing applications. The Company also says they aren't seeing any increase in competition. Between 2006 and 2011, the fiber market grew 27%, but in 2011, it grew 60%. They believe the fiber market will grow to a $1.4 billion industry and if they can maintain market share, they believe they will produce sales of over $1 billion from this segment. The Company believes they have over 90% of the high power fiber business. ...
I can't predict recessions. If there isn't one, [IPG] will probably make another big recovery just like last year. If there is a recession, the price will drop creating an even better opportunity to buy. ... The fiber laser market looks like a great opportunity to build positions for the future at better and better value points.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of IPG and Rofin-Sinar. Motley Fool newsletter services have recommended buying shares of IPG and Rofin-Sinar. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.