BroadwindBased in Illinois, Broadwind Energy Inc. (NASDAQ: BWEN) is one of the largest manufacturers of utility-scale wind towers in America. The company is a major clean energy innovator and developed the first 100 meter wind tower installed in the United States. Broadwind has built over 3000 towers for large scale energy production in the last decade.

Despite being a technology leader, Broadwind has failed to turn a meaningful profit in the last five years. In 2018, it made $125.38 million in revenue, but reported a gross profit margin of just 1.45%. Broadwind deals heavily in new and emerging technologies, so its development costs are high. Wind power has only recently achieved cost parity with traditional generation methods. Investors who purchase this stock need to consider the long term potential.

Broadwind recently announced $29 million in new tower orders, with production scheduled through to 2020. The company is growing, and expanding its customer base, which will take it closer to achieving higher profitability. Broadwind focuses on large customers and order diversification. This is a smart strategy, but investors should not expect to see strong results in the short term.

The demand for clean energy is growing, with solar and wind expected to take the largest share of a $200 billion addressable market. This stock is affordable today and is a good pick for any alternative portfolio.

Key Data:

  • 1 Year Price Growth: -8.61%
  • YTD Price Growth: 42%
  • 3 Month Price Growth: 12%

 

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