Wednesday, January 20th, 2010
Top 3 (Truly) Alternative Energy Stocks
MasTec, Inc. (NYSE:MTZ), Portec Rail Products, Inc. (NASDAQ:PRPX), and FLIR Systems, Inc. (NASDAQ:FLIR) are three truly alternative energy stocks to check out amid the surge in government spending and plethora of new programs in development.
An Indirect Utility and Infrastructure Play
MasTec, Inc. (MTZ), a specialty contractor for utility and communications infrastructure, has moved up more than 50% from its lows over the past 52 weeks and still trades at just 14.68x earnings. Given President Obama’s focus on building infrastructure within utilities, this billion-dollar company could see some significant upside during the next few years.
During the third quarter, the company’s gross margins increased 60 basis points to 15.6% while its earnings rose to $21.6 million, or $0.27 per share, on revenues of $397 million. Federal government finalization of stimulus plan programs has caused delays in projects, but these are expected to come in the door during the coming years.
An Efficient Transportation Company
Portec Rail Products, Inc. (PRPX), a provider of rail products and systems, has seen its shares moved up more than 120% from their lows over the past 52 weeks, but still trades at a cheap price-earnings multiple of just 14.9x and even pays a 2.25% dividend yield. Given the increased political focus on rail as a means of green transportation, this stock could be a solid long-term play.
Recently, the company also announced that it penetrated the Chinese market with its Fault Detection product group. After steadily growing its presence in China, the company is now establishing itself in the growing nation that will spend a record $120.6 billion in rail expansion this year alone as it rapidly scales up its nationwide network.
A Play on Energy Efficiency Technologies
FLIR Systems, Inc. (FLIR), a manufacturer and marketer of thermal imaging systems, has seen its shares move up more than 60% off their 52-week low, but continues to trade at just 21.12x earnings. Given the focus on improving energy efficiency, and the added bonus of a security-related product, this stock could see some significant upside over the next few years.
Last quarter, the company announced revenues that increased 3% to $285.6 million and operating income that increased 17% to $89.3 million. Furthermore, the company noted that it expects its full-year results to be slightly above its most recent outlook. These full-year results will be released on Thursday, February 11, 2010.
Written by Rick Telfur
