5-Star Stocks Poised to Pop: Johnson Controls

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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, auto parts and building efficiency specialist Johnson Controls (NYS: JCI) has earned a coveted five-star ranking.

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

Johnson Controls facts

Headquarters (Founded)

Milwaukee (1885)

Market Cap

$25.5 billion

Industry

Auto parts and equipment

Trailing-12-Month Revenue

$39.1 billion

Management

Chairman/CEO Stephen Roell
CFO R. Bruce McDonald

Return on Equity (Average, Past 3 Years)

7.9%

Cash/Debt

$335 million / $5.2 billion

Dividend Yield

1.7%

Competitors

Honeywell International (NYS: HON)
Lennox International (NYS: LII)
United Technologies (NYS: UTX)

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

On CAPS, 96% of the 1,136 members who have rated Johnson Controls believe the stock will outperform the S&P 500 going forward. These bulls include polterziets and OnTheClock.

A couple of months ago, polterziets succinctly summed up the Johnson Controls bull case: "Good battery play, but more diversified than small cap firms. Strong automotive systems market share."

Over the next five years, in fact, Johnson Controls is expected to grow its bottom line at a solid rate of 18% annually. That's faster than competitors like Honeywell (14%), Lennox (14%), and United Tech (12%).

CAPS member OnTheClock expands on the outperform argument:

JCI seems well positioned in the ever-growing market of "Green" energy and cost / consumption reduction leveraging technologies to enhance and improve efficiencies. While they have a play in the battery market, I think their concentration should be directed more toward HVAC, as batteries are a high cost, low revenue venture that seems to have too many players that will drive too much cost competition.

What do you think about Johnson Controls, 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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