Shares of Westport Fuel Systems (WPRT -0.29%) jumped an incredible 117.4% in November, according to data provided by S&P Global Market Intelligence, after the company reported earnings and got a huge tailwind from alternative fuel investors.
Third-quarter 2020 revenue fell 13% to $65.4 million and net income from continuing operations was $0.8 million, down from $4.9 million a year ago. In November, management also announced a $50 million at-the-market share offering program to shore up the balance sheet.
Results weren't particularly impressive, but that didn't seem to stop alternative fuel and renewable energy investors last month. The entire industry pushed higher and that tailwind benefited stocks like Westport Fuel Systems more than most others.
Last month's move looks more like speculation than a fundamental improvement in operations, but that can be said for a lot of alternative energy stocks in the second half of 2020. I think there's a lot of potential for natural gas and hydrogen, which will drive Westport's results. But until we see revenue growth and more consistent profitability, this is a stock I'll be staying out of because I see it as too risky in a volatile energy market.