Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of electric power infrastructure specialist American Superconductor
So what: Driven largely by a 46% sales jump at its power-systems segment, AMSC posted third-quarter earnings of $0.40 per share, versus the average analyst estimate of $0.33 per share. Additionally, AMSC upped its full-year profit outlook for the third time, to a range of $1.33-$1.38 per share. It also announced plans to reduce its reliance on Chinese wind power company Sinovel, which accounted for about 70% of third-quarter sales.
Now what: Even with today's pop, AMSC might be worth looking into. In addition to the positive short-term outlook, management expects those renewable energy tailwinds from Asia to grow its top line to $1 billion, and expand its operating margins to more than 20% by 2014 -- one full year ahead of schedule. And with AMSC's PEG ratio of 0.6, representing a clear discount to rivals ABB
Interested in more info on AMSC? Add it to your watchlist.
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.
More from The Motley Fool
2 International Stocks for Retirees
International exposure can help reduce certain types of risk for retirees.
General Electric Co. and ABB Ltd. Do Business: What it Means to Investors
Let's analyze what the sale of GE Industrial Solutions means for the investment thesis behind both stocks.
3 Top Dividend Stocks in Electrical Equipment Industry
Emerson Electric, ABB Ltd and United Technologies are attractive stocks for income seeking investors.