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This Week’s Stock Picks & BNN Top Picks Summary: CSCO-Q, NFLX-Q and 22 Stock Top Picks (Jul 05-11)
Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Experts are generally positive about Hammond Power Solutions Inc. (HPS.A-T), emphasizing the company's role in providing equipment for the electrical business and its potential for capital gains. The increasing demand for power in big tech, data centers, and electric vehicles is also seen as a positive indicator for the company's future prospects. However, there is caution about the stock's recent surge and the need to assess its sustainability.

Consensus
Positive
Valuation
Fair Value
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This is a Panic-proof Portfolio opinion which is available only for Premium members

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)
electrical / electronic
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.

electrical / electronic
BUY

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

electrical / electronic
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.

electrical / electronic
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. 

electrical / electronic
BUY

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

electrical / electronic
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.
electrical / electronic
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.
electrical / electronic
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.
electrical / electronic
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.

electrical / electronic
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 .)

electrical / electronic
BUY
Dry power cell transformers. Expect it will go up again.
electrical / electronic
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.
electrical / electronic
BUY
(Market Call Minute.) Long-term Buy. At play on alternative power.
electrical / electronic
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Hammond Power Solutions Inc.(HPS.A-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 4

Stockchase rating for Hammond Power Solutions Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Hammond Power Solutions Inc.(HPS.A-T) Frequently Asked Questions

What is Hammond Power Solutions Inc. stock symbol?

Hammond Power Solutions Inc. is a Canadian stock, trading under the symbol HPS.A-T on the Toronto Stock Exchange (HPS.A-CT). It is usually referred to as TSX:HPS.A or HPS.A-T

Is Hammond Power Solutions Inc. a buy or a sell?

In the last year, 4 stock analysts published opinions about HPS.A-T. 3 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hammond Power Solutions Inc..

Is Hammond Power Solutions Inc. a good investment or a top pick?

Hammond Power Solutions Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Hammond Power Solutions Inc..

Why is Hammond Power Solutions Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Hammond Power Solutions Inc. worth watching?

4 stock analysts on Stockchase covered Hammond Power Solutions Inc. In the last year. It is a trending stock that is worth watching.

What is Hammond Power Solutions Inc. stock price?

On 2024-07-19, Hammond Power Solutions Inc. (HPS.A-T) stock closed at a price of $104.26.