4-Star Stocks Poised to Pop: Power-One
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power management solutions provider Power-One (NAS: PWER) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Power-One's business and see what CAPS investors are saying about the stock right now.
Power-One facts
Headquarters (Founded) | Camarillo, Calif. (1973) |
Market Cap | $729.6 million |
Industry | Electronic components |
Trailing-12-Month Revenue | $1.19 billion |
Management | CEO Richard Thompson (since 2008) CFO Gary Larsen (since 2010) |
Return on Equity (Average, Past 3 Years) | 16% |
Cash/Debt | $142.7 million / $36.0 million |
Competitors | Emerson Electric (NYS: EMR) General Electric (NYS: GE) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 676 members who have rated Power-One believe the stock will outperform the S&P 500 going forward. These bulls include personaltrader and IgnorantFool77.
In March, personaltrader tapped Power-One as a particularly excellent pick: "Excellent fundamentals, excellent margins, excellent prospects and excellent production capability placement. Nuclear bears only make me more bullish on this stock."
Currently, Power-One even sports a paltry forward P/E of 6.3. That represents a discount to much larger rivals Emerson (12.2) and GE (10.5), as well as TE Connectivity (NYS: TEL) (9.5).
CAPS member IgnorantFool77 elaborates on the bull case:
Let's talk about the business for a moment. Its focus is on energy conversion and energy management. It specifically is a leader in the area of energy efficient inverters. There is a race on right now across most industries to demonstrate their ability to 'go green,' and become more energy efficient. This is not only looks good to the press it looks good on the bottom line. They are the second largest manufacturer of solar energy inverters, and also make wind inverters.
What do you think about Power-One, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Emerson. 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.
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