5-Star Stocks Poised to Pop: Babcock & Wilcox

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nuclear equipment specialist Babcock & Wilcox (NYS: BWC) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at B&W's business and see what CAPS investors are saying about the stock right now.

B&W facts

Headquarters (Founded)Charlotte, N.C. (1867)
Market Cap$2.94 billion
IndustryHeavy electrical equipment
Trailing-12-Month Revenue$2.72 billion
ManagementCEO Brandon Bethards (since 2008)
CFO Michael Taff (since 2010)
Trailing-12-Month Return on Equity32.9%
Cash/Debt$292.2 million / $4.9 million
CompetitorsFoster Wheeler (NAS: FWLT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, all 78 members who have rated B&W believe the stock will outperform the S&P 500 going forward. These bulls include JohnGalt21 and megawatt43.

A few months ago, JohnGalt21 nicely summed up the B&W bull case: "The company's 3rd generation 'mPower' Advanced Light Water Reactor will be a key product as countries around the world replace aging nuclear reactors and bring new plants online, particularly in China."

Currently, B&W even trades at a cheapish EV/EBITDA ratio of 6.9. That represents a slight discount to listed rival Foster Wheeler (8.7), as well as peers AECOM (NYS: ACM) (8.4), Chicago Bridge & Iron (NYS: CBI) (9.9).

CAPS member megawatt43 expands on the outperform argument:

BWC is positioned to take advantage of the world energy supply demand increase. It has an established reputation in the steam generation electrical energy sector, particularly in Coal, CC HRSG, and Nuclear. The combination of after-market and new system supply demand increases both in the US and abroad, make BWC a great bet for the future

What do you think about B&W, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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