5-Star Stocks Poised to Pop: IPG Photonics

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fiber 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's business, and see what CAPS investors are saying about the stock right now.

IPG facts

Headquarters (founded)	Oxford, Mass. (1990)
Market Cap	$455.75 million
Industry	Electronic Manufacturing Services
TTM Revenue	$229.1 million
Management	Founder/CEO Dr. Valentin Gapontsev CFO Timothy Mammen
Compound Annual Revenue Growth (over last five years)	46.7%
Competitors	JDS Uniphase (Nasdaq: JDSU) Corning (NYSE: GLW) Cisco Systems (Nasdaq: CSCO)
CAPS members bullish on IPGP also bullish on	Cemex (NYSE: CX) Exelixis (Nasdaq: EXEL)
CAPS members bearish on IPGP also bearish on	General Motors (NYSE: GM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 946 of the 963 members who have rated IPG -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include Northville and All-Star TSIF, who is ranked in the top 3% of our community.

In late February, Northville highlighted IPG as a laser-sharp leader:

IPGP has about a 2-3 year R&D advantage over competitors in the growing fiber laser market. It seems to be gaining market share in this down time which will allow it to emerge stronger when the global economy returns and it is just finishing up a cycle where it has added capacity with relatively little debt. It is also continuing to invest in R&D and adding sales force in an intelligent way. The recipe equals success.

In a pitch from last week, TSIF urged our community to stay laser-focused:

A recent study indicates that the growth rate for lasers will subside the next two years before taking off again. While this could curb growth and maybe IPGP won't return right away to their 52 week high of $22, the study also indicated that fiber lasers, IPGP's specialty, would show the least decline. ... They continue to innovate and have the cash flow to be aggressive. Income has held steady the last 4 quarters and it appears that besides possible forward earnings, IPG Photonics has weathered the recession quite nicely and worth well more than half their 52 week high.

What do you think about IPG Photonics, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.