A Basket of Green Stocks to Buy

Polypore International

52-Week Range: $10.17-$29.40

Morningstar Fair Value Estimate: $25

Company Overview: Polypore International(PPO) membrane separators are a key component in lithium and lead-acid batteries in the energy-storage segment.

Share Catalysts: Strong demand for the Nissan(NSANY) Leaf, Mitsubishi iMiev, Ford(F) Transit Connect and CODA automotive vehicles that are using Polypore's material and are scheduled to begin rolling out in late 2010 will be key drivers of the stock, according to Needham & Company.

Analyst Assessment: "Polypore International is interesting due to the high growth potential it adds in the mix," Collins says. "The fact the company supplies battery separators to the iPad is huge and will not only drive revenue for the next two years, but also attract momentum traders. The current market cap is only twice sales, and the company has a forward P/E under 20, which is acceptable given the anticipated high growth rate. Debt is a concern, but with profitability already well in hand, a solid product mix, and consistently strong earnings, this one is a must own."