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Top 6 Stocks to Buy for March

A pullback should provide excellent buying opportunities in these small caps and household names

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Top Stock to Buy #6 – Westport Innovations (WPRT)

Westport Innovations (NASDAQ:WPRT), a global leader in the manufacturing of natural gas engines, uses innovative alternative energy technology that allows diesel trucks to run on natural gas.

Management recently cut its 2012 revenue outlook from $400 million to $340 million, and the company has a string of losses. But those who believe, as I do, that a major change is about to occur in the use of natural gas vehicles (NGV) should consider this stock. On Nov. 15, Deutsche Bank (NYSE:DB) initiated coverage of WPRT with a “buy” rating, saying, “We believe risk-reward is attractive at current levels.”

On Nov. 26, the company announced a unique on-board storage solution. The company said that their newly developed LNG Tank System is expected to give the ability to fuel even the largest spark-ignited engines on a single tank of LNG and reduce the overall fuel costs and weight “dramatically.” On Dec. 3, it was announced that Westport would provide natural-gas-powered versions of the Ford F-450 and F-550 Super Duty trucks in mid-2013, and recently truckers in Canada have begun installing the system.

Technically, the stock reversed its long-term downtrend by breaking through its bearish resistance line at $28 and jumping to $32.89. Profit-taking could drive the stock under $30, which is our buy under price. The near-term trading target could be as high as $38, and long-term buyers could see substantially higher returns.

WPRT Chart
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