When you fly, outside temperatures drop 3.5 degrees every 1,000 feet you go up.
Flying out of South Florida at sea level and climbing to 30,000 feet means it is 105 degrees colder in the air than it is on the ground.
Aircraft manufacturers insulate airplanes with special foam to keep passengers from freezing to death on flights.
The market for the aerospace foam used is growing rapidly, as you can see from this chart:
From 2020 to 2030, Next Move Strategy Consulting projects the global aerospace foam market to jump 108.6%.
That kind of market increase stands out in a crowd, so I like to look to our Stock Power Ratings system for ways to capitalize.
I found one stock that should deliver.
UFP Technologies Inc. (Nasdaq: UFPT), a company that develops and manufactures specialty foam products, is today’s Power Stock.
In addition to manufacturing foam used in aircraft, UFPT markets specialty packaging for the medical market and fabrics used in military uniforms.
UFPT stock scores a "Strong Bullish" 97 out of 100 on our Stock Power Ratings system.
We expect it to beat the broader market by 3X in the next 12 months.
UFP Technologies Stock: Strong Growth + “Maximum Momentum”
UFPT recently closed out an outstanding quarter:
- Sales were $97 million — a 91.3% jump from the same period a year ago!
- The company’s net income for the quarter was $33.3 million — up 162.2% from last year!
Those incredible revenue figures show why UFPT scores a 92 on our growth factor.
UFPT stock is also strong on our quality factor, where it scores an 82.
The company sports positive double-digit returns on assets, equity and investment … all while its industry peers average negative returns.
This tells us the company knows how to churn out profits — which is great for investors.
Let’s get into UFP Tech stock’s market-beating momentum:
From its September 2022 low to its recent December high, UFPT posted a 46% gain. The stock is only 7.5% off its high … and I’m confident it’s going to hit it and go higher.
It’s showing the “maximum momentum” we love to see in stocks.
Over the last 12 months, UFPT stock has jumped 70.1%. The S&P 500 is down 11.3% over the same time.
UFP Technologies stock scores a 97 overall on our proprietary Stock Power Ratings system.
That means we're “Strong Bullish” and expect it to beat the broader market by at least 3X in the next 12 months.
It’s below freezing at 30,000 feet.
Aircraft need to insulate passengers from those bitterly cold conditions.
UFP Tech stock is a strong contender for your portfolio as it continues to manufacture this critical material in a booming industry.
Stay Tuned: A Global Coca-Cola Play
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned tomorrow, where I’ll share all the details on a soft-drink distributor that is winning big in a smaller region.
Matt Clark, CMSA®
Research Analyst, Money & Markets