HOW TO PLAy IT

Forbes - - STRATEGIES - BY TAESIK YOON

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.

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