5-Star Stocks Poised to Pop: IPG Photonics

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's business and see what CAPS investors are saying about the stock right now.

IPG facts

Headquarters (founded) Oxford, Mass. (1990)
Market Cap $2.5 billion
Industry Electronic manufacturing services
Trailing-12-Month Revenue $474.5 million
Management

Founder/Chairman/CEO Dr. Valentin Gapontsev

CFO Timothy Mammen

Return on Equity (average, past 3 years) 16.5%
Cash/Debt $205.7 million / $25.6 million
Competitors

Coherent

Newport

Rofin-Sinar Technologies

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

On CAPS, 98% of the 1,332 members who have rated IPG believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star joryko, highlighted several of IPG's positives:

  • Offered 3 million shares of common stock to the public.
  • Offered a good buying spot for me at a slightly discounted price.
  • Tremendous balance sheet with almost no debt and over $200 million cash on hand.
  • Analysts are looking for an EPS of $3.30 in 2013, which would set its forward PE at about 17, acceptable for a growing company with no debt.
  • Five-year [PEG ratio] sits at 0.8 and [IPG] had previously spiked in mid-February on its strong demand outlook for the first quarter.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, IPG may not be your top choice.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of IPG and Rofin-Sinar. Motley Fool newsletter services have recommended buying shares of IPG and Rofin-Sinar. 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.


Read/Post Comments (1) | Recommend This Article (2)

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.

  • Report this Comment On March 09, 2012, at 8:14 PM, dstb wrote:

    Why in the world is offering new stock a positive?? Interest rates are rock bottom low and this company has no debt. Not only that but the stock is way off its all time high. Why would they want to issue cheap shares and dilute existing shareholders when they could likely issue cheap debt? Makes not sense whatsoever.

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