American SuperconductorThe alternative energy market has slowed in 2019. While there is still long-term potential, some investors haven’t seen the growth they expected, leading to a pullout in some stocks. American Superconductor Corp. (NASDAQ: AMSC) has seen its share of volatility in the market recently, but it is still a top bargain pick with excellent long-term prospects.

When this stock was last reviewed it had an average BUY rating on FactSet with a target price of $16. Almost half a year later, the projection is unchanged, but there have been developments that make it more promising.

In August, the company received a landmark order for $9 million of wind turbine equipment from Doosan, a major South Korean heavy construction company. The order is expected to be fulfilled in 2020, and it will contribute significantly to American Superconductor bottom line.

The company’s 2019 fiscal year saw 16.12% in revenue growth, with a total of $56.21 million. This turns around two years of sustained revenue declines. The company also released a positive revenue figure in its first quarter 2020 report in August, reporting $13.77 million in sales, compared to $12.61 million in the year ago period.

Moderate growth could give new life to this stock, and, even if it doesn’t, it’s still a compelling pick. American Superconductor has proprietary wind turbine technologies that will only make it more competitive as the alternative energy market picks up. Renewables are here to stay, and more countries are pushing ahead with megaprojects to offset their carbon emissions. American Superconductor is in the perfect position to capitalize as demand increases.

Key Data:

  • 1 Year Price Growth: 82%
  • YTD Price Growth: -21.97%
  • 3 Month Price Growth: 32%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.