Why Westport Is Ready to Rebound
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, alternative fuel technologist has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Westport and see what CAPS investors are saying about the stock right now.
Vancouver, Canada (1995)
Construction and farm machinery and heavy trucks
Founder/CEO David Demers
CFO William Larkin
Trailing-12-Month Return on Equity
$173.9 million / $77.3 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 1,905 members who have rated Westport believe the stock will outperform the S&P 500 going forward.
This will take a while to play out, but Westport knows what they are doing.
-WPRT is using the joint ventures as proofs-of-concept that their natural gas engines are more economically efficient and environmentally friendly than diesel engines.
-Once they develop a sufficient amount of data, the biggest players will start to convert their trucking fleets over to Westport's high-pressure direct injection (HPDI) technology. ...
-Once this happens, watch for the company's "On-Road Systems" segment to take off. ...
The biggest risk is that the engine manufacturers learn enough from Westport to develop their own, superior technology. If that does happen, WPRT loses their IP competitive advantage and all related royalties. That would be very bad.
But overall, this is a capital-light business with a huge tailwind, and they seem to be taking the right steps for long-term success.
As the most advanced designer of engines powered by natural gas, Westport Innovations is a small company with a big goal: to lead the world in transitioning away from traditional oil-based fossil fuels in favor of abundant, cheap, and clean natural gas. The company has a price tag large enough to match its ambition, and will need to grow revenue quickly in order to justify sky-high expectations. To help you determine whether Westport Innovations is right for your portfolio, The Motley Fool has just released a brand-new premium report breaking down the company's opportunities, competitive advantages, and risks. To get started, simply click here now for instant access.
The article Why Westport Is Ready to Rebound originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Westport Innovations. The Motley Fool owns shares of Westport Innovations. 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 Motley Fool has a disclosure policy.