Why Power Solutions Is Poised to Keep Poppin'

Updated
Why Power Solutions Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, alternative-fuel power systems Power Solutions has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Power Solutions and see what CAPS investors are saying about the stock right now.

Power Solutions facts

Headquarters (founded)

Wood Dale, Ill. (1985)

Market Cap

$474.8 million

Industry

Heavy electrical equipment

Trailing-12-Month Revenue

$206.9 million

Management

Chairman/CEO Gary Winemaster

CFO Daniel Gorey

Trailing-12-Month Return on Equity

13.2%

Cash/Debt

$295.0 thousand / $31.9 million

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, all 30 of the members who have rated Power Solutions believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those bulls, TMFChaodan, tapped the stock as a rather speculative, but potentially powerful momentum play:

Power Solutions seems like it is headed in an upward trajectory. However this growth is heavily dependent on the expected EPA regulations tightening which is already happening. When the EPA tightens its regulations, it is usually the case that other countries will also move toward doing the same. PSIX already has strategic partnership with MAT (an OEM that has most of the market share in China for industrial forklifts). The pie is going to expand.

On the other hand, I'm not exactly sure if Power Solutions would be the best positioned among its competitors to take advantage of the widening pie (also, there is the question of whether or not the pie will actually widen, given that it is all very political).

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Power Solutions may not be your top choice.

After all, there are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need". Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

The article Why Power Solutions Is Poised to Keep Poppin' 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.

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