Get ready for the closing bell today because that’s when one of my favorite alternative energy stocks reports its fourth-quarter earnings. Over the last several quarters, Fuel Systems Solutions (FSYS) has developed a nice habit of embarrassing Wall Street’s earnings forecasts and soaring dramatically higher the next day.
Let’s run through some recent history to show you what I mean. Three quarters ago, Fuel Systems rallied strongly going into its earnings, then reported earnings that more than doubled Wall Street’s earnings forecast. The next day, the stock jumped 25.5%.
Two quarters ago saw almost an instant replay. The company doubled Wall Street’s forecast and the shares jumped 29% the next day.
Last quarter Fuel Systems really outdid itself. The company nearly tripled Wall Street’s consensus. The next day, the stock rallied 45%!
So what am I predicting for today? Heaven knows! Wall Street’s consensus is for 42 cents a share. I know enough about Fuel Systems not to venture a guess–and that’s all it would be. But I will say that I rate the stock a very strong buy.
There’s one other point to mention about Fuel Systems. “Green technology” is a high priority of the Obama administration so that will certainly give a higher profile to stocks in this sector.