#7 - Aspen Aerogels (NYSE:ASPN)
Patient investors with a time horizon beyond 2025 may be intrigued by the sell-off in Aspen Aerogels Inc. (NYSE: ASPN). The company provides industrial insulation primarily used for lithium-ion batteries, which puts it squarely in the electric vehicle (EV) space. And that’s where things have been problematic for investors.
ASPN was part of the meme stock trade in 2021 and shot up to over $30 per share on expectations that the EV transition was imminent. That transition is ongoing for sure, but demand is slowing for a number of reasons, and it’s unlikely to heat up in 2025. As evidence of that, the company announced a construction halt on a plant in Georgia that was being built to help the company deliver at scale, which doesn’t appear to be an immediate concern.
That's reflected in the company’s revenue and earnings guidance for 2025, which is coming in flat. But if you have a time horizon beyond that, you may want to consider starting a position now. ASPN stock is trying to form a bottom as it approaches 18-month lows.
However, if you have the patience to wait on ASPN, analysts give the stock a consensus price target of $16, which represents an 89.5% gain from its price on February 19, 2025.
About Aspen Aerogels
Aspen Aerogels, Inc designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier.
More- Current Price
- $8.04
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $22.44 (179.3% Upside)
It may seem that buying stocks under $10 in search of high growth is an example of FOMO. However, most successful investors in this space are able to keep their emotions in check and look at the stock that is trading at a discount to its fundamentals.
One of the best ways to decide if a stock may be undervalued is to look at analysts' ratings. While analysts can and do get it wrong sometimes. More often than not their insights into a company are often accurate based on the company's fundamentals and the guidance provided by the company itself.
That doesn't mean stocks can't move contrary to analysts' forecasts. The meme stock movement continues to prove that. It also doesn't mean that a company is always accurate in its guidance. But more often than many investors would care to admit, following analyst sentiment is a good indicator of a stock's future movement.
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