HOW TO PLAy IT
ExxonMobil’s strides toward sustainable energy are admirable, but why not invest in a pure play? As the only independent producer of composite blades for the wind-energy market, TPI Composites, in Scottsdale, Arizona, has a global manufacturing footprint and has enjoyed strong sales growth since going public in July 2016. The newly passed tax bill preserves valuable alternative-energy tax credits, so this growth is likely to continue, though earnings will probably lag for now: Costs have increased to support the sizable amount of new business won over the past year. But with $4.4 billion in contracts through 2023 and forays into other alternative-energy markets (such as composite bus bodies for heavy-duty electric-vehicle maker Proterra), it’s only a matter of time before TPIC’s profitability catches up. Its shares, down 20% since the end of October 2017, are a bargain.
Taesik Yoon, CFA, is editor of Forbes Investor and Forbes Special Situation Survey.