5-Star Stocks Poised to Pop: Ampco-Pittsburgh

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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, cold-rolled steel equipment producer Ampco-Pittsburgh (NYS: AP) has earned a coveted five-star ranking.

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

Ampco-Pittsburgh facts

Headquarters (Founded)Pittsburgh (1929)
Market Cap$217.7 million
IndustryIndustrial machinery
Trailing-12-Month Revenue$345.7 million
ManagementChairman/CEO Robert Paul
CFO Marliss Johnson
Return on Capital (Average, Past 3 Years)15.7%
Cash/Debt$71 million / $13.3 million
Dividend Yield3.1%

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

On CAPS, 97% of the 260 members who have rated Ampco-Pittsburgh believe the stock will outperform the S&P 500 going forward. These bulls include cdubey and TMFElleMoran.

A few months ago, cdubey listed several of Ampco-Pittsburgh's positives:

- Family owned.
- Good executive compensation practices.
- Low debt.
- P/S is low compared to the industry.
- Sales are growing.
- Holds a niche market of making custom engineered metal products.

Currently, Ampco-Pittsburgh even sports a cheapish price-to-sales ratio of 0.6. That represents a discount to much larger industrial plays like General Electric (NYS: GE) (1.1), United Technologies (NYS: UTX) (1.1), and ABB (NYS: ABB) (1.3).

CAPS member TMFElleMoran expands on the Ampco-Pittsburgh outperform argument:

A well run business with a solid reputation. I don't expect high growth, but sustainable, predictable increases in sales as demand for steel increases worldwide. Compared to other companies in the steel industry, AP has the advantage of making a niche product -- cold-rolled steel -- in which they have developed a great reputation. The company is small enough to be agile, but dominant enough to call the shots. I like that combination.

What do you think about Ampco-Pittsburgh, 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!

Interested in another easy way to track Ampco-Pittsburgh?Add it to your watchlist.



At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Ampco-Pittsburgh. 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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