Clean energy names Power Solutions International and MasTec both made the IBD Screen Of The Day, which identifies stocks with Relative Strength At New Highs.
It's no surprise that these stocks made the list. Both have far outperformed the S&P 500, with Power Solutions increasing sixfold since its April low. And MasTec hit a record high on Monday and has also doubled from an April low.
This Clean Energy Stock Builds A Base
Power Solutions added another 4.5% on Monday. The stock climbed for 16 out of 18 weeks and reached a record high on Aug. 8, before pulling back and forming a new base.
The clean energy stock is building the right side of a stage-one cup base with a 121.78 buy point, according to MarketSurge pattern recognition. The entry is also its all-time high.
Its relative strength line reached a 52-week high, as shown by the blue dot on its weekly chart. It also earned a best-possible 99 IBD Relative Strength Rating.
The stock is back above its 10-week moving average after testing it within the base.
Power Solutions crushed second-quarter adjusted earnings and sales forecasts on Aug. 7. Its second-quarter sales growth ramped up to 74% from 9% three quarters prior, with several declining quarters before that.
The company "anticipates strong sales growth for 2025 compared to 2024, driven by expected growth in the power systems end market, including products supporting data centers, while sales in the industrial and transportation end markets are projected to remain about flat," it said in its earnings release.
Analysts project full-year 2025 profit of $3.29 per share, or a 17% rise from $2.81 per share in 2024. And 2026 estimates call for $3.96 per share, or a 20% increase.
Mutual funds seem to have discovered the clean energy stock, with 102 owning shares in June, up from 32 in March.
Power Solutions designs, engineers, and manufactures clean, high-performance engines and power systems that utilize natural gas, propane, gasoline, diesel, and biofuels.
Its customers are in the power systems, industrial and transportation markets, as well as the military. It also makes products supporting data centers.
Power Solutions ranks No. 1 out of 57 stocks in the Machinery-General Industrial group, which holds the 43rd spot out of the 197 industry groups that Investor's Business Daily tracks.
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MasTec Stock Hits A New High
Meanwhile, MasTec broke out of an early-stage consolidation pattern with a 194 buy point last week. Monday's 3% move higher pushed the stock above a buy zone, reaching 203.70. Its relative strength line also hit a new high.
The company beat second-quarter earnings and revenue projections on July 31. Its profit grew 49%, while sales growth accelerated to 20% from flat three quarters prior.
But its third-quarter earnings guidance came up a tad shy, and the stock plunged 8% the following day.
MasTec's bottom line greatly improved in 2024, with a 130% boost in profit, following three out of the four prior years showing declining earnings.
Wall Street projects a healthy 52% jump in full-year 2025 profit, followed by a 22% rise in 2026.
MasTec stock has an IBD Accumulation/Distribution Rating of B+, indicating fairly heavy institutional buying over the last 13 weeks. Management owns a hefty 19% of shares, showing conviction in the clean energy stock.
MasTec specializes in infrastructure construction. Its business units are divided into Communications, Power Delivery, Pipeline Infrastructure, and Clean Energy and Infrastructure.
It serves the communications, oil and gas, power generation, electric vehicle charging, and energy transition industries. The company holds a 98 Composite Rating.
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