Harris Roen, Editor
Roen Financial Report
February 6, 2013
Have you ever wondered what the best rated alternative energy stocks are? How do you find companies engaged in solar or energy efficiency that rise to the top of the stack? Which “pure-play” alternative energy companies have the best prospects for investor return? The Roen Financial Report has released an exclusive new service that ranks energy efficiency, environmental services, fuel alternatives, smart grid, solar and wind companies.
Investors can now easily see how stocks rank within their respective industries. Companies are ranked on a 1 to 5 scale — Rank 1 stocks are judged to have the best potential, and Rank 5 warns of caution. This new feature is a valuable addition our Company Profiles, which include plain English descriptions, useful economic data, stock alerts and our proprietary Fair Value meter.
How are these ranks determined? By sifting through extensive amounts of economic data including debt, historic and forward earnings, analyst ratings and many others. Results are then compared to like companies in order to make the best “apples-to-apples” assessment.
For example, ITC Holding, Corps. (ITC) has many positives when compared to other like businesses. This large Midwestern electricity transmission company has sound stock valuation levels, upwardly revised earnings estimates, excellent five-year performance and high analyst ratings. Because of these and other factors, ITC ranks very well overall: Rank 2 for smart grid and Rank 1 for wind.
Another example is one of the pure play companies that we track, First Solar, Inc. (FSLR). Because of deterioration in its financials, First Solar does not fare well on many financial filters when compared to other alternative energy companies. It is also considered at the high end of fair value, and has elevated debt levels (though not unreasonable). Because of this and many other factors, FSLR gets a Rank 4.
A second new feature added to company profiles is a Speculative Level rating for each stock that we cover. A company’s speculative level is determined by using numerous measures, including company size, beta, price fluctuation, listing status, earnings quality and others. Speculative Level ratings range through five levels, from very low to very high. This warns investors about what they may be getting into by grasping a true sense of a stock’s volatility.
With these new features, users get a comprehensive, clear outlook for each of the +/-250 alternative energy companies covered. Here at the Roen Financial Report we believe that knowing what you invest in is extremely important to successful portfolio management. In the words of Peter Lynch, “The person that turns over the most rocks wins the game. And that’s always been my philosophy.”