This is a small cap company with double-digit growth rates. It operates in the booming battery sector.
High Power International (HPJ)
From Top Stocks Under $10
High Power International (HPJ) is a small cap Chinese battery maker that outfits companies like Phillips and Costco. It’s not highly covered, so the shares can whip around. But the stock is supported by strong fundamentals. In the last quarter, total revenue grew by 42% to near 2-year highs.
In fact, here’s a snapshot from our Weiss Ratings site that show how strong its fundamentals are right now, compared to its 2-year averages. The more blue diamonds that show up on the right side of this screen, the more positive the fundamental trends are:
Strong demand for lithium-ion batteries from the electric vehicle, smartphone, wearable devices, and notebook industries is driving the positive trends. But the company isn’t stopping there. It recently retained the consulting firm ICR to help it better penetrate the U.S. markets, something we could see results from in the second half of this year.
HPJ has had a nice run. But its operational performance along with its low valuation (the stock trades at just 12.3x trailing earnings) tells me the move isn’t over. I’m looking for more continuation to the upside, and have a target of $6.50.
Mandeep Rai, Top Stocks Under $10, Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/top-stocks-under-10, issues@e.moneyandmarkets.com; 1-800-291-8545, April 17, 2017