Good Time to Buy Laser Makers!
All of the companies in the laser industry are growing like crazy and the recent pullback in their stocks has made them a great buy. Rofin-Sinar(RSTI), Coherent(COHR), and IPG Photonics(IPGP) are all expected to grow earnings and revenue at more than 50% this year. Their p/e ratios are all considerably lower than expected earnings growth this year. They all have huge order backlogs that will keep them busy for awhile. The laser industry is quickly trying to switch to fiber lasers because they are much more energy efficient. IPG Photonics has the obvious lead in the fiber laser market and is growing the fastest of the three laser makers. The laser makers are seeing demand improve significantly across all of their markets. IIVI(IIVI) is a company that supplies the laser makers with mirrors and infrared lights to build their lasers. IIVI is expected to grow revenue 40% this year and earnings 80%. I think all of these companies are a great buy right now.