4-Star Stocks Poised to Pop: IPG Photonics

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

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

IPG facts

Headquarters (Founded) Oxford, Mass. (1990)
Market Cap $2.21 billion
Industry Electronic manufacturing services
Trailing-12-Month Revenue $451.9 million
Management Founder/Chairman/CEO Dr. Valentin Gapontsev
CFO Timothy Mammen
Return on Equity (Average, Past 3 Years) 15.7%
Cash/Debt $196.6 million / $26.9 million
Competitors Coherent (Nasdaq: COHR  )
EMCORE (Nasdaq: EMKR  )
JDS Uniphase (Nasdaq: JDSU  )

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

On CAPS, 97% of the 1,221 members who have rated IPG believe the stock will outperform the S&P 500 going forward. These bulls include 4wheelfool and maven12.

This past summer, 4wheelfool succinctly summed up the IPG bull case: "Disruptive company with large market share and global footprint. Accelerating earnings, low price."

Over the next five years, in fact, IPG is expected to grow ! its bott om line at a brisk rate of 23% annually. That's much faster than listed rivals like Coherent (13%), EMCORE (10%), and JDS Uniphase (12%).

CAPS member maven12 elaborates on the growth opportunity:

CO2 laser is among the critical tools in manufacturing, joining, welding, cutting, and scoring. [IPG] has leadership in this field as a vertically integrated firm. That integration gives it the ability (assuming it gets signals from the top to the bottom of the firm) to alter production schedules to respond to changes much more quickly than its competitors.

Most critical, however, is that it doesn't have many competitors and those who do exist are not integrate firms.

What do you think about IPG, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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