This story appears in the February 27, 2018 issue of Forbes. Subscribe
ExxonMobil's strides toward sustainable energy are admirable, but why not invest in a pure play? As the only independent producer of composite blades for the wind-energy market with a global manufacturing footprint, TPI Composites (TPIC), in Scottsdale, Arizona, has enjoyed strong sales growth since going public in July 2016.
The newly passed tax bill preserves valuable alternative-energy tax credits, so this growth is likely to continue, though earnings will probably lag for now: Costs have increased to support the sizable amount of new business won over the past year. But with $4.4 billion in contracts through 2023 and forays into other alternative-energy markets (such as composite bus bodies for heavy-duty electric-vehicle maker Proterra), it's only a matter of time before TPIC's profitability catches up. Its shares, down 20% since the end of October 2017, are a bargain.
Taesik Yoon, CFA, is editor of Forbes Investor and Forbes Special Situation Survey.
Related article: Over A Barrel: ExxonMobil Preps For The Low-Carbon Future
