8 Best Industrial Stocks To Buy According to Analysts

2. Aspen Aerogels, Inc. (NYSE:ASPN)

Number of Hedge Funds: 22

Analyst Upside Potential: 80.41% 

Aspen Aerogels, Inc. (NYSE:ASPN) is a technology company that specializes in aerogel technology, which is an industrial insulation that helps improve energy efficiency. Their key products include Pyrogel designed for high-temperature applications, reducing heat loss and preventing corrosion in energy systems, and Cryogel, used for very low temperatures, this insulation helps maintain the integrity of cold systems like those found in oil and gas industries.

The strategic edge of the company lies in the application of its products. Its products are used in next-generation technologies such as electric vehicles, where its products enhance battery safety and efficiency and energy production, where it helps improve the performance of power generation systems.

Aspen Aerogels, Inc. (NYSE:ASPN) has been doing well financially, which was demonstrated by its second-quarter results of fiscal 2024. During the quarter the company grew its revenue by 145% to $117.8 million ahead of the consensus of $101.4 million. The revenue growth was driven by an increase in its Thermal Barrier business which grew its revenue by 540% year-over-year to $80.8 million.

The use case of companies products in electric vehicles is expected to contribute significant growth for the company. Analysts’ 12-month median price target is pointing towards an 80.41% upside potential from the current levels. Thereby making it one of the best industrial stocks to buy according to analysts.

Here is what Brick By Brick Capital has to say about Aspen Aerogels, Inc. (NYSE:ASPN) in its Q2 2022 investor letter:

“I am constantly reevaluating our positions and I am quick to change my mind if for example the thesis breaks or broader market forces change. That happened with a past position Aspen Aerogels (NYSE:ASPN). Many of you bought the stock in the low $30s to high $20s. I eventually exited everyone from the position in the mid teens for a loss of ~30%. I exited the position because the market sentiment towards high growth “story” stocks like ASPN completely soured along with their need for a capital raise was too much risk.

Roughly a month after selling the stock, ASPN fell ~40% in a day to the single digits on an announcement of an extremely dilutive capital raise. The point of the story? I remain vigilant on your portfolios and while loses are never fun, I am steering the ship clear of the Titanic size loses that can ruin a portfolio.”