Saturday, May 4, 2013

Why IPG Photonics Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fiber-based laser and amplifier maker IPG Photonics (NASDAQ: IPGP  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at IPG and see what CAPS investors are saying about the stock right now.

IPG facts

Headquarters (founded)

Oxford, Mass. (1990)

Market Cap

$3.0 billion

Industry

Electronic manufacturing services

Trailing-12-Month Revenue

$581.2 million

Management

Founder/Chairman/CEO Dr. Valentin Gapontsev

CFO Timothy Mammen

Return on Equity (average, past 3 years)

22.5%

Cash/Debt

$355.7 million / $23.9 million

Competitors

Coherent

Rofin-Sinar Technologies

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,495 members who have rated IPG believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, seavirostek, tapped IPG as a particularly timely bargain opportunity:

This stock was down 10% [yesterday] because its earnings were only 15% over last year. Shucks! Mr. Market hates being disappointed!

In the meantime, IPGP serves a global client base, was #9 on the list of Fortune's 100 fastest growing companies in 2012, enjoys a substantial "green" advantage over competitors, and provides fiber lasers and amplifiers in a range of different market applications. My original position was up 20% since I bought it a year ago (even with the 10% drop), so I was glad to double my shares.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, IPG may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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