Based on the aggregated intelligence of 170,000-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 respected four-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

$1.54 billion


Electronic manufacturing services

Trailing-12-Month Revenue

$252.56 million


Founder/CEO Dr. Valentin Gapontsev

CFO Timothy Mammen

Return on Equity (Average, Past 3 Years)



$96.6 million / $23.85 million


Coherent (Nasdaq: COHR)

Newport (Nasdaq: NEWP)

Rofin-Sinar Technologies (Nasdaq: RSTI)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 957 members who have rated IPG believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Geofiz, who is ranked in the top 10% of our community, and Zippany.

Last year, Geofiz noted that IPG "produces the best fiber lasers in the business, period." Our CAPS member continues: "This is a play on the continuing drive by customers for efficiency in a difficult operating environment. IPG's products allow them to do so at a cost lower than most of the competition."

Thanks in large part to that cost advantage, IPG's three-year average operating margin (17.3%) tops that of rivals Coherent (10.1%), Newport (2.9%), and Rofin-Sinar (10.1%), as well as another laser-tech play II-VI (Nasdaq: IIVI) (17.1%).

CAPS member Zippany expands on the outperform case:

Leader in a breakthrough technology with big demand for broad applications. There is limitless demand for enabling technologies in broadband infrastructure. IPG Photonics makes fiber lasers which are a revolutionary step. There are many medical applications waiting to be tapped and some industrial ones too.

What do you think about IPG, or any other stock for that matter? 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, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. IPG is a Motley Fool Rule Breakers choice, and the Fool owns shares of it. Rofin-Sinar is a selection of Hidden Gems. The Fool owns shares of II-VI. 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.