Investing in suppliers is an excellent way to gain exposure to the alternative energy market. Capstone Turbine Corp (NASDAQ: CPST) is a large turbine manufacturer that sells industrial products to all segments of the energy industry, including renewables. Capstone’s micro turbine devices are used for combined heating and power, cooling, renewable energy generation, natural resource energy generation, and critical power supply. The company is well established which makes it quite unique in the renewable energy market. Capstone Turbine was founded in 1988 and is based in California.
Stock is currently overperforming thanks to a recent increase in investor confidence. Strong financial results have helped to bring investors back on board. Sales revenue for 2018 increased 7.34%, despite some slowdown in the renewable energy sector. Gross income increased above 700% thanks to a significant reduction in cost of goods sold.
Capstone Turbine may be a penny stock today, but the gradual adoption of renewable energy technologies in the United States could turn this into a mainstream stock within the next ten years. This is a great pick to get in early on the renewable market.
- 1 Year Price Growth: -37.41%
- YTD Price Growth: 54%
- 3 Month Price Growth: 41%
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.