4-Star Stocks Poised to Pop: Honda Motor

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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, Japanese auto giant Honda Motor (NYS: HMC) has earned a respected four-star ranking.

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

Honda facts

  
Headquarters (Founded)Tokyo (1946)
Market Cap$54.4 billion
IndustryAutomobile manufacturers
Trailing-12-Month Revenue$101.2 billion
Management

President/CEO Takanobu Ito

CFO Satoshi Aoki

Return on Equity (Average, Past 3 Years)6%
Cash/Debt$16.9 billion / $48 billion
Dividend Yield2.6%
Competitors

Ford (NYS: F)

General Motors (NYS: GM)

Toyota (NYS: TM)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,814 members who have rated Honda believe the stock will outperform the S&P 500 going forward. These bulls include All-Star lennysims and Vanheezy18.

Just last week, lennysims tapped Honda as a timely bargain pick: "[T]ook a real beat down but looks like I might have caught them pretty close to their low ... [S]upply chain and whatnot appears to be getting back in order. I am also a big fan of Hondas the things just run and run."

In fact, Honda currently sports a relatively low price-to-book of 0.97. That represents a discount to U.S. competitors Ford (7.98) and GM (1.13), although it's slightly above Toyota's beaten down figure of 0.77.

CAPS member Vanheezy18 elaborates on the industry bull case:

As a car sales broker, I'm betting on this segment in general. People have not stopped buying cars. American households still own 2 1/2 cars and they still trade every 36 months on average. The automakers are going to become an outperformer as people are forced to trade in their gas-guzzlers for much more efficient vehicles. Hybrid and Electric technology is being refined to the point that within 5 years, small and midsized car owners will be crazy not to buy into the new technology.

What do you think about Honda, 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 trackHonda?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 Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of Ford and GM. 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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