According to a report released by a senior analyst at Stifel, who went to China to attended the Photonics conference, the top 2 stocks in the optical and laser industry include IPG Photonics Corporation (NASDAQ:IPGP) and Coherent Inc. (NASDAQ:COHR).IPG Photonics Corporation (NASDAQ:IPGP) manufactures and develops diode lasers, fiber amplifiers and fiber lasers for a number of different applications.
However, the products of this company are mainly used in the material processing industry. Laser products by IPG Photonics (NASDAQ:IPGP)include scanners, chillers, beam switches, fiber couplers, delivery cables for high powers, packaged diodes, laser diodes, single frequency and single polarization lasers, tunable lasers, fiber pigtailed lasers and low to high quality power lasers.The company recently posted the financial figures of its fourth quarter.
Analysts were expecting the company to post revenues of $204 million. However, IPG Photonics Corporation (NASDAQ:IPGP) blew all of them away by posting $207.4 million. According to a number of researchers, there is a lot that the company can do in the automotive sector. It is trying to get automotive companies interested in its products by improving its working with Zinc. Stifel has given the company a target price of $107 whereas the consensus price stands firm on $105.57.
During the last trading session of March 10, IPG Photonics Corporation (NASDAQ:IPGP) started its stocks at a price of $100.42 and closed at a price of $100. The company has a market capitalization of $5.24 billion with a beta of 1.65. As far as the EPS (earnings per share) is concerned, figures are recorded to be at $3.79. Coming to Coherent Inc. (NASDAQ:COHR), the company is known for providing solutions to a wide range of scientific and commercial products.
The company deals with two systems: Commercial Lasers and Specialty Lasers. Not only does Coherent (NASDAQ:COHR)design these systems, but it also markets and distributes them. The Lasers and systems of Coherent (NASDAQ:COHR)are used mostly in the material processing systems, microelectronics, and research applications of the government. Demand for the products of this company is quite high in China. The fiber laser of Coherent (NASDAQ:COHR)has gained significant there.
Many of the researchers are viewing it as a catalyst that would increase the profit margins of the company. Analysts have given a target price of $78 to Coherent Inc. (NASDAQ:COHR) whereas the consensus target price given by Thomson was recorded to be at $75.75. On the last trading day of March 10, 2015, the company started its stocks at a price of $66.22 and closed at a price of $67.33 after hitting the highest figures of $67.73.
The company has a market capitalization of $1.63 billion with a P/E (price to earnings) ratio of 26.12.Optical and Laser stocks are known for their profit potential. Investors should keep these two companies in mind before investing in any laser and optical stock, especially if they want to make some good money.