Fuel cell manufacturer Ballard Power Systems Inc. (NASDAQ: BLDP) has seen its stock grow more than 200% in the market this year. Strong revenue performance and high-profile technology and supply deals have given a boost to confidence. This has persisted right up to the fourth quarter. Find out why this alternative energy stock is a strong pick for any bargain portfolio.
Ballard released earnings data at the end of October, with strong revenue and margins reported. The company generated total revenue of $24.8 million with a gross profit margin of 25%. The company ended the quarter with cash reserves of $153.4 million, putting it in a strong position for the final quarter and the year ahead.
Growth is being driven by an increasingly strengthened supply portfolio. Ballard signed major contracts including one for 3x 100kW modules that will power the world’s first emission-free push boat. Another was a 9x 100kW module deal for ultra-class mining trucks in South Africa. The fuel cell industry is moving quickly. Large companies like Daimler plan to introduce fuel cell powered trucks by 2020. Chinese cities like Shenzhen and Foshan plan to use only zero-emission public transport vehicles from this point onwards. This creates a strong opportunity for Ballard, which can supply the fuel cells that will be in demand.
This stock is bargain priced today and it has strong upside potential. Price is outperforming estimates. As the fuel cell market grows, it could break well beyond bargain territory.
- 1 Year Price Growth: 85%
- YTD Price Growth: 77%
- 3 Month Price Growth: 33%
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