FTEK Stock Soars in 2019: More Analysts Say “Buy”

FTEK Stock

May has been an interesting month for Fuel Tech (NASDAQ:FTEK) shares. Climbing almost 10% already, there are subtle signs surrounding FTEK stock for investors to consider.

One of those is a recent “Buy” rating from ValuEngine.

Currently, Fuel Tech trades for $2.62 USD on the NASDAQ.

FTEK Stock

ValuEngine upgraded shares of Fuel Tech from a “Hold” to a “Buy” on Wednesday, May 1st. The analyst is not alone.

HC Wainwright weighed in on FTEK stock with a “Buy” rating in mid-March, as did Zacks Investments Research. Both set price targets of $2.00 and $1.50 respectively.

Quarterly Results

The reason for the upgrades was likely due to Fuel Tech’s impressive quarterly results. On March 14th, the pollution control company reported $0.04 EPS for the quarter along with a positive return on equity of 0.03% and a negative net margin of 0.05%.

Revenue came in at $15.83 million for the quarter, which trumped analyst expectations of $13.91 million. Now, there is a consensus agreement that Fuel Tech will post 0.05 EPS for the current fiscal year.

Time to Buy?

With prominent analysts bullish on FTEK stock, should investors consider buying? Well, looking at the stock’s recent performance, it has hit both those listed price targets above and then some.

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In fact, since the company released its earnings report, shares have more than doubled. Early investors to this stock have already gained over 110% on their initial purchase value if they bought anywhere from 2018 onwards.

With FTEK stock already surpassing analysts’ price targets, it’s hard to predict much more gaining ahead. What is more likely in the near-term is a correction of sorts. How dramatic or not that correction would be remains to be seen.

Fuel Tech Longterm

But a positive to consider is the long-term potential in Fuel Tech. The company provides “boiler optimization and efficiency improvement” to residential and industrial customers worldwide. Effectively, the company’s services allow companies to reduce pollution.

Further, “the company anticipates that its ability to adapt to changing fuel sources from fossil to natural gas will prove advantageous for the Air Pollution Control segment in the quarters ahead.”

Fuel Tech will by no means become obsolete as the world embraces cleaner energies. In fact, culture is arguably moving in favor of this company’s services, meaning an even brighter future could lie in wait.

What do you think? Are you an FTEK stock investor?

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