Back to top

Aggressive Growth

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

IPG Photonics Corp (IPGP - Snapshot Report) is the top rated stock in a very hot industry.

After coming in ahead of expectations in the most recent quarter, estimates for this Zacks #1 Rank (Strong Buy) are looking extremely bullish.

Company Description

IPG Photonics makes high-powered fiber lasers and amplifiers. The products are used in the materials processing, medical, telecommunications and other industries.

Revenue Jumps 86%

On Feb 25 IPG Photonics announced an 86% increase in fourth-quarter revenues, to $101 million. Annually, the top line is up 61%, to $299 million.

Margins for the company have ballooned, pushing earnings even higher. Net income for the quarter was $27.1 million, up from just $3.1 million a year ago. Annual net income is up 10 fold, to $54 million.

Earnings broke down to $0.56 per share, up from just $0.07 a year ago. That figure was 2 cents better than the Zacks Consensus Estimate, giving IPG Photonics its fourth consecutive earnings surprise.

A Bright Future

Analysts agreed with the company's bullish outlook on 2011 and quickly raised full-year estimates. The average forecast for this year jumped 61 cents, to $1.90.

Next year's projections are up 80 cents on average, to $2.35. Last year IPG Photonics made $1.13 per share, making the expected growth rates 68% for this year and another 24% in 2012.

Cream of the Crop

Currently IPG Photonics' industry is ranked 16th out of 265 and IGP is the top rated of the 11 stocks in the peer group. Their net profit margin of 18% is 3 times the industry average. The company has a 19.5% ROE, which is more than double the norm for the group.

The Chart

Expectations for IPGP have spiked recently. You can see below that estimates were recovering gradually, but the recent surge has pushed the forecasts almost off the charts.

IPG Photonics  - ticker IPGP>

 
<P ALIGN=

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%