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Westport Fuel Rides on Alternate Fuel Systems Amid Cost Woes

Zacks Equity Research

We issued an updated research report on Westport Fuel Systems Inc. WPRT on Apr 15.

This Canada-based company is a developer, manufacturer and supplier of advanced alternative fuel systems and components. In fourth-quarter 2018, Westport Fuel’s net loss from continuing operations missed the Zacks Consensus Estimate while consolidated revenues surpassed the same. The figures improved from the year-ago quarter. Huge demand for appropriate fuel systems and components are driving the company’s growth momentum.

In fact, with growing demand for environment-friendly vehicles among customers, original equipment manufacturers (OEMs) are expanding alternative fuel vehicle offerings. This has in turn resulted in strong demand for appropriate fuel systems and components. This actually positions Westport Fuel favorably, with a suite of market-ready alternative fuel products across all segments of transportation.

However, in 2018, the company’s SG&A expenses rose 6% year over year to $67 million. This rise was primarily due to restructuring activities and legal costs. Continuous rise in expenses is hurting the company’s bottom line despite top-line improvements.

Shares of Westport Fuel have outperformed the industry it belongs to in the past three months. Over this time frame, it has gained 15% while the industry rose 9.4%.



Zacks Rank & Stocks to Consider

Currently, Westport Fuel carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader auto sector are Geely Automobile Holdings Ltd. GELYY, Ferrari N.V. RACE and Fox Factory Holding Corp. FOXF. While Geely and Ferrari currently sport a Zacks Rank #1 (Strong Buy), Fox Factory carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Geely’ long-term growth rate is projected at 7%. Over the past three months, shares of the company have gained 43.2%.

Ferrari has an expected long-term growth rate of 18.5%. Shares of the company have gained 20.5% over the past three months.

Fox Factory has an expected long-term growth rate of 15.1%. Shares of the company have gained 20.9% over the past three months.

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Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
 
Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report
 
Ferrari N.V. (RACE) : Free Stock Analysis Report
 
Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report
 
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