With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should keep buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at Westport Innovations
Forecasts on Westport Innovations
|Median Target Stock Price||$31.00|
|Fiscal 2011 EPS Estimate||($1.11)|
|Fiscal 2012 EPS Estimate||($0.66)|
|Expected Annual Earnings Growth, Next 5 Years||30%|
|CAPS Rating (out of 5)||*****|
Source: Yahoo! Finance. NM = not meaningful due to negative expected earnings.
How will 2012 go for Westport?
Westport isn't expected to have a huge year in 2012. Analysts expect somewhat narrower losses for the small company, which is a good sign after much wider losses in 2011. But it's still likely to end up a long way for being truly profitable.
But Westport has set the stage for longer-term profits. One key component of that has been Westport's strategy of forging ties with much larger companies. With both Ford
Westport's playing a similar strategy in the commercial realm. Although it has had a long-standing relationship with Cummins
One fair concern that investors may have is that the stock has come quite far very fast. With a gain of almost 80% in 2011 -- including a jump of 20% in December alone -- investors have high hopes for Westport. If any of its initiatives fall short, those gains could reverse themselves in a hurry. Nevertheless, as a speculative stock, Westport's worth a close look to add to sector exposure alongside more-established energy companies.
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