5-Star Stocks Poised to Pop: Starwood Property

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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, real estate investment trust Starwood Property Trust (NYS: STWD) has earned a coveted five-star ranking.

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

Starwood facts

Headquarters (Founded)Greenwich, Conn. (2009)
Market Cap$1.8 billion
IndustryMortgage REITs
Trailing-12-Month Revenue$148.6 million
ManagementChairman/CEO Barry Sternlicht
CFO Perry Ward
Trailing-12-Month Profit Margin64.5%
Cash/Debt$88.5 million / $678.8 million
Dividend Yield9.3%
CompetitorsArbor Realty Trust
JER Investors Trust
Petra Real Estate Opportunity Trust

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

On CAPS, 95% of the 62 members who have rated Starwood believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, market8, tapped the stock as a solid income opportunity:

I would opt for Starwood Property Trust, which is a commercial mortgage REIT. Banks are pulling away from their commercial lending and that leaves a giant void for financing to commercial property owners. This is where Starwood Property Trust steps in and they can do it on favorable terms with limited competition. The stock [yields 9.3%], it is run by one of the greatest business minds -- Berry Sternlicht, and trades at book value.

What do you think about Starwood, 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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

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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