- Orion Energy Systems is a light manufacturing and servicing company that has won many U.S government contracts due to its Buy American Act compliance.
- After a stellar year for its stock and a poor year for its earnings, the company is trading at an extreme valuation that is far above normal industrial equity levels.
- The consensus growth outlook for Orion is very strong, however I have doubts considering its historically low profit margins and extreme dependence on one customer.
- With its stock showing signs of peaking, I believe OESX is a solid short opportunity as its valuation declines to more reasonable levels.
For further details see:
Orion Energy Systems: The Green Lights Are Dimming