TSE:HPS.A

Hammond Power Solutions Inc. (HPS.A.TO)

278.90
+0.87 (0.31%)
as of Jul 17, 2026, 8:00:00 pm Market Open.
114 watching
0
Investor Insights
star iconJul 17, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

Hammond Power Solutions Inc. (HPS.A-T) has been positively reviewed across various experts, highlighting its strong positioning in the burgeoning electrical infrastructure market, particularly in relation to AI and data centers. The company manufactures transformers that are essential for power generation and storage, benefiting from the ongoing electrification trend. Recent earnings reports show a record revenue increase and a significant year-over-year growth in backlog by 122%. However, the stock has experienced some volatility, especially around quarterly earnings, and while there are signals of future growth, experts caution about potential challenges from rising raw material costs and cost overruns in new facilities. Overall, the analysts express optimism about HPS.A's long-term prospects, as demand for energy solutions continues to rise amid advancing technology.

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Consensus
Buy
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Valuation
Undervalued
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

HPS-A is the manufacturer of electric transformer systems used by electric utilities, the oil & gas sector and for EV charging stations.  Recently reported earnings indicated record high quarterly sales and a 6% increase in earnings.  We like that cash reserves are growing, while debt is retired.  It trades at 22x earnings and supports a 25% ROE.  We recommend setting a stop-loss at $75, looking to achieve $130 -- upside potential of 28%.  Yield 1.0%  

(Analysts’ price target is $162.00)
COMMENT

Shares have taken off due to the electrification of the grid, driven by EV demand. Kudos if you own this, but he doesn't buy smallcaps. Owners own a lot of shares. Needs to research this more.

BUY

Big tech and data centres need more power, because AI consumes a lot. Hammond plays into this.

DON'T BUY

Surprisingly, this is doing well, returning 10x your investment over 2 years. HPS has benefited from the boom in energy storage and data centres. Revenues and margins have shot up, so can they sustain this? He doesn't chase stocks that have shot up.

BUY

Canadian company that produces equipment for electrical business. Demand for EV cars, and electricity in general creating strong demand for products. Outlook for business very strong. Would expect large capital gains going forward. 

BUY

Are positioned well. Sadly, he missed buying this much cheaper. This still has legs. Still fairly valued now.

BUY
It has trouble breaking past $7.50, but he would look for a nice-volume move breaking above $7.50, then see if it breaks $10. Expect a little resistance above $8. The chart looks pretty good.
PAST TOP PICK
(A Top Pick Jun 18/18, Down 21%) They've been under margin pressure that he didn't expect. So,he exited in late-2018. This holding was a mistake, and mistakes can happen in investing. You must know when to cut your losses.
COMMENT
Seasonality is Dec.2-April 15 when it beats the benchmark by 21%. These tech-related stocks are starting to bottom lately, but not outperforming during the market low. That said, it is a rounded bottom since Q4 2018 and is curently holding its lows. If it can prop higher, this could be a tremendous buying opportunity. The 50-day average is $6.
PARTIAL BUY

Hold or maybe buy more. It is dominant in electrical transformers. Businesses overseas are starting to turn around. Their end markets are all doing very well right now. It should do well over the next few years. It checks a lot of the boxes for him.

TOP PICK

Make smaller-scale electric transformers, with a pretty dominant market share, and could benefit from future increased number of electric vehicle stations. Really well run, clean balance sheet, 2.5% dividend. Sell to US customers in transportation, mining, power, oil & gas, infrastructure, where their end markets are strong and should be strong for several years. Low valuation, significant insider ownership. Good cash flow, could increase dividend and increase earnings significantly. A hidden gem in a niche sector. Canadian company that benefits from strong US economy. (Analyst’s price target is unknown .)

BUY
Dry power cell transformers. Expect it will go up again.
BUY
Produce Transformers that are used in different industries. Greatest success of late has been in the wind power and mining industries. Recently did an acquisition to expand their product offering. Has been in his watch list. Very strong management with good opportunities.
BUY
(Market Call Minute.) Long-term Buy. At play on alternative power.
Showing 31 to 44 of 44 entries