5-Star Stocks Poised to Pop: IPG Photonics

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.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. IPG and Exelixis are Motley Fool Rule Breakers recommendations. Cemex is a selection of Stock Advisor and Global Gains. The Fool owns shares of IPG, Exelixis, and Cemex. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 884534, ~/Articles/ArticleHandler.aspx, 7/24/2014 5:11:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement