After a disastrous 2015, a year when it lost nearly half its value, Westport Innovations Inc. (NASDAQ:WPRT) stock has recovered sharply so far in 2016: It's up nearly 29% year to date as of this writing.
While critics fear that Westport's impending merger with Fuel Systems Solutions, (NASDAQ: FSYS) could delay its turn around, investors are perhaps encouraged by the ongoing strength in sales from Westport's joint venture with Cummins Inc. (NYSE:CMI), which also happens to be its key source of income currently. Westport earned $12.8 million from the Cummins-Westport venture during the nine months ended September 30, 2015 compared to only $0.5 million in the comparable period in 2014.
While that is definitely an encouraging sign, it isn't the only reason to be optimistic about Westport's prospects. Fiscal year 2016 could be a game-changer for the company as it takes a giant leap in the alternative-fuel space through its merger with Fuel Systems, even as its partnership with Delphi Automotive (NYSE:DLPH) starts bearing fruit. To learn the three catalysts that could work in Westport's favor and send the stock higher this year, check out the slideshow below.