Tuesday, July 16, 2013

Why IPG Photonics 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, fiber-based laser and amplifier maker IPG Photonics (NASDAQ: IPGP  ) has earned a coveted five-star ranking.

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

IPG facts

Headquarters (founded)

Oxford, Mass. (1990)

Market Cap

$3.0 billion

Industry

Electronic manufacturing services

Trailing-12-Month Revenue

$581.2 million

Management

Founder/Chairman/CEO Dr. Valentin Gapontsev

CFO Timothy Mammen

Return on Equity (average, past 3 years)

22.5%

Cash/Debt

$355.7 million / $24.6 million

Competitors

Coherent

Rofin-Sinar Technologies

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

On CAPS, 98% of the 1,513 members who have rated IPG believe the stock will outperform the S&P 500 going forward.   

A couple of months ago, one of those bulls, fellow Fool Billy Kipersztok (TMFTailwind), tapped IPG as a particularly sharp bargain opportunity:

Classic niche dominator. High returns on invested capital, solid growth prospects, and management is continuing to invest in the business. Stock price has taken a bit of a hit since mid-February due to an earnings miss, but I think this is an attractive entry point for a long-term investment.

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

In fact, it's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

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