Power Solutions: Great Growth And Margin Expansion Prospects (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• New data center projects are being announced every week, and hyperscalers are investing heavily in expanding their capacity. These data center trends are likely to boost growth in Power Systems.
• Continued mix shift toward the higher-margin Power Systems segment is a lever for structural gross margin expansion.
• PSIX's 1-yr fwd PE valuations are at a discount vs historical ranges, and the stock is supported by earnings growth upgrades.
• PSIX vs SPX500's relative technicals also point bullish after a recent uplisting on the NASDAQ.
• A key risk to the bull view is the fact that PSIX has significant connections to a Chinese entity, and this could be a risk under a Trump administration.

Read the full article here.