Bargain stocks are typically considered to be below the $10 price range, but what about high return stocks that cost just over twice as much? Should they be ignored, or can they still be bargains if there’s long term potential? In the case of Atlantica Yield PLC (NASDAQ: AY) many alternative energy investors would still consider it a steal. It’s a stock that’s outperforming its industry and it has grown 21.99% this year, outpacing the major indexes.
Atlantica is interesting because it is a highly diversified clean energy company. 68% of its yearly revenue comes from clean energy, including wind and solar farms. The company engages in natural gas energy production and it owns several water assets. It also develops infrastructure. Having such a wide spread of interests can protect the company against extreme volatility. Unlike many stocks right at the very-low bargain end of the market, this one pays a dividend. It currently has a yield of 6.36%.
Sales revenue movement has been positive for the last five consecutive years. In 2018, revenue was up 3.51%, while gross income declined by -4.81%. Even so, the gross profit margin is still impressive at 48.81%.
Unlike many alternative energy stocks, there’s not a huge amount of speculation in this one. Atlantica has a solid business model with known and quantifiable revenue streams. It would make a strong addition to portfolios that are filled with highly speculative penny stocks, and the dividend ensures a predictable return for the short and mid-term.
- 1 Year Price Growth: 41%
- YTD Price Growth: 99%
- 3 Month Price Growth: 64%
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.