Should AMSC Stock Be Part of Your Portfolio Ahead of Q3 Earnings?

American Superconductor Corporation AMSC is expected to report its third-quarter fiscal 2024 results on Jan. 22. For the fiscal third quarter, AMSC expects revenues in the band of $55-$60 million. The Zacks Consensus Estimate is pegged at $56.85 million, indicating a rise of 44.5% from the year-ago period’s reported figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.American Superconductor anticipates a fiscal third-quarter non-GAAP loss of not more than 5 cents per share. The consensus mark is projected at earnings of 7 cents per share, unchanged over the past 60 days. The company reported non-GAAP earnings of 3 cents per share in the year-ago quarter.Image Source: Zacks Investment ResearchWe note that American Superconductor’s bottom line surpassed the Zacks Consensus Estimate in each of the four trailing quarters, the surprise being 328.2%, on average.American Superconductor Corporation Price and EPS Surprise American Superconductor Corporation price-eps-surprise | American Superconductor Corporation QuoteEarnings Whispers for AMSCOur proven model does not conclusively predict an earnings beat for American Superconductor this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.Though AMSC carries a Zacks Rank #2, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Factors to Note Ahead of AMSC’s Q3 ResultsAmerican Superconductor’s third-quarter performance is likely to have benefited from the recent acquisition of NWL Inc. The company acquired NWL in August 2024 in a cash-stock deal worth $56.4 million and expects it to be immediately accretive to its top and bottom lines.American Superconductor's third-quarter results are expected to benefit from an improved business model, increased bookings and a strengthened balance sheet. The company’s strengthening operational and manufacturing capabilities are likely to have contributed well to its top-line growth in the quarter under review.Increasing demand for its energy power and ship protection systems is expected to have positively impacted the Grid segment’s performance in the to-be-reported quarter. Its growing focus on expanding U.S. ship platforms is expected to have acted as a tailwind. The consensus estimate for Grid revenues is pegged at $50.1 million, suggesting growth of 49% year over year.Growing shipments to Inox of both its 2-megawatt and 3-megawatt class turbines are likely to have bolstered the Wind segment’s performance in the fiscal third quarter. The consensus mark for Wind revenues is pegged at $6.8 million, indicating year-over-year growth of 18.4%. Strong momentum across renewables, mining and metals, semiconductors and military end-markets is likely to have boosted the company’s performance in the to-be-reported quarter.However, macroeconomic uncertainties and unfavorable foreign exchange fluctuations are expected to have been concerns.AMSC Stock Price Performance & ValuationAmerican Superconductor shares have outperformed the Zacks Electronics - Miscellaneous Components industry and the broader tech sector in the past year. The stock has also outperformed its peers, including Ballard Power Systems BLDP, OSI Systems OSIS and BWX Technologies BWXT.One-Year Price Return PerformanceImage Source: Zacks Investment ResearchLet us look at the value American Superconductor offers investors at current levels. Currently, AMSC is trading at a premium, with a forward 12-month price-to-sales (P/S) of 4.5X compared with the industry’s 2.52X. Its peers, Ballard Power Systems, OSI Systems and BWX Technologies, have a forward 12-month P/S of 5.4X, 1.62X and 3.76X, respectively.Forward 12-Month Price-To-Sales MultipleImage Source: Zacks Investment ResearchInvestment Thesis for AMSC StockAmerican Superconductor is a promising investment, leveraging its expertise in renewable energy and power resilience. The company is strategically positioned in high-growth sectors like grid interconnections, wind energy and marine power solutions, all vital to the global shift toward cleaner and more reliable energy systems.AMSC’s advanced grid technologies, such as D-VAR and REG systems, address the urgent need for modernized power grids, particularly as renewable energy integration increases worldwide. The August 2024 acquisition of NWL expanded its footprint into industrial and military power supply markets, diversifying revenue streams and enhancing product offerings.By focusing on renewable energy, grid stability and defense solutions, AMSC aligns with critical global trends, offering investors a compelling opportunity to benefit from long-term growth in energy sustainability and national security.Conclusion: Buy AMSC Stock for NowAmerican Superconductor’s growth story is far from over. Its leadership in alternative energy, coupled with strong product offerings and strategic partnerships, positions the company for continued success. Its robust financial performance and increasing market demand bode well for long-term prospects.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Superconductor Corporation (AMSC): Free Stock Analysis Report OSI Systems, Inc. (OSIS): Free Stock Analysis Report Ballard Power Systems, Inc. (BLDP): Free Stock Analysis Report BWX Technologies, Inc. (BWXT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks