On Jul 11, we issued an updated research report on Westport Fuel Systems Inc. WPRT.
The Canada-based company engages in the manufacture and supply of advanced alternative fuel systems and components.
The company’s portfolio consists of environmentally friendly vehicles, which is driving demand for its products. Westport HPDI 2.0, which enhances performance of heavy-duty trucks, is likely to contribute meaningfully to the company’s revenues in 2019. The system has been successfully launched in Europe and is soon to be introduced in China. The company is well positioned on the back of market-ready alternative fuel products across the transportation segments. These factors are strengthening the company’s market presence.
Westport Fuel is focusing on the development of technologies to fortify its leadership position. Further, the company regularly makes acquisitions and divestments to develop technologies as well as edge-on, non-core businesses. These divestments enable the company to focus on the transportation sector.
Adoption of rigorous environmental regulations and mandating greenhouse gas emission reductions in key markets around the world has opened up opportunities for Westport Fuel to generate higher revenues and boost market position.
However, there are a few headwinds that might affect its performance. The company is witnessing a liquidity crisis with losses and negative cash flows. Additionally, legal costs stemming from SEC investigations as well as restructuring activities are likely to hurt Westport Fuel’s bottom line in spite of top-line improvements.
In the past six months, Westport Fuel has outperformed the industry it belongs to. During the same time frame, the company’s shares have surged 79.7% compared with the industry’s rise of 7.4%.
Zacks Rank & Other Stocks to Consider
Westport Fuel sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the auto space are Ford Motor Company F, CarMax, Inc KMX and AutoZone, Inc AZO. While Ford sports a Zacks Rank #1, CarMax and AutoZone carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ford has an expected long-term growth rate of 7.3%. In the past six months, shares of the company have gained 13.4%.
CarMax has an expected long-term growth rate of 12.57%. In the past six months, shares of the company have rallied 36.9%.
AutoZone has an expected long-term growth rate of 12.2%. In the past six months, shares of the company have improved 39%.
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