5-Star Stocks Poised to Pop: Westport Innovations
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, alternative fuel technologist Westport Innovations (NAS: WPRT) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Westport's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Vancouver, Canada (1995)|
|Market Cap||$1.2 billion|
|Trailing-12-Month Revenue||$167.44 million|
Founder/CEO David Demers
CFO William Larkin
|Return on Equity (Average, Past 3 Years)||(58.4%)|
|Cash/Debt||$162.4 million / $26 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Earlier this month, doinitmyway nicely summed up the Westport bull case: "I believe this company is a buyout candidate. [T]hey have a niche in a green industry converting diesel engines to natural gas, have landed a couple of good contracts and they are working with large players like [General Motors]."
Over the next five years, in fact, Westport is expected to grow its bottom line at a brisk rate of 30% annually. That's faster than other clean-energy plays like Fuel Systems Solutions (NAS: FSYS) (12%) and Tesla Motors (NAS: TSLA) (25%).
CAPS member thirdrock3 elaborates on the Westport bull case:
A company like this with key inventions to make natural gas a successful substitute fuel in diesel engines, joint venture with Cummins [ (NYS: CMI) ], the world's best diesel engine manufacturer, and more ventures on the way should be successful. To top it off natural gas is the economic choice to supplement hydrocarbons from crude oil in light of the vast reserves which can be developed in the United States. Electric cars will depend on power from generating plants which exhaust 2/3 of the energy input to the surroundings, or more unreliable sources such as wind. Alternative cars such and electric and ethanol are cute supplements to direct use of clean fuels such as methane, LPG, gasoline, and Diesel, the source of our modern economic success, but will always be uneconomic (according to the first, second and third laws of thermodynamics).
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Westport and GM. 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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