5-Star Stocks Poised to Pop: RTI Biologics

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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, orthopedic implant maker RTI Biologics (NAS: RTIX) has earned a coveted five-star ranking.

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

RTI facts

Headquarters (Founded)Alachua, Fla. (1997)
Market Cap$208.6 million
IndustryHealth-care supplies
Trailing-12-Month Revenue$169.3 million
ManagementCEO Brian Hutchison (since 2008)
CFO Robert Jordheim (since 2010)
Return on Capital (Average, Past 3 Years)2.8%
Cash/Debt$46.2 million / $400 thousand
CompetitorsCook Inc.
Integra LifeSciences Holdings
LifeCell

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

On CAPS, 95% of the 223 members who have rated RTI believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star zzlangerhans, highlighted the stock's recent pullback as a possible bargain opportunity:

Every three months the company releases the most boring earnings statements you could ever read, with quarterly revenues that barely budge from [$42 million] and guidance to upcoming quarterly revenues that barely budges from 42M. But the stock? Dropped by 50% from April to August 2010, then doubled by November 2011, and now seems back on its way to another 50% drop. ... What caused the disappointment? Quarterly revenues of 43M slightly surpassed last quarter's guidance of 40-41M, the company booked their usual 2M of profit, and they projected next quarterly revenues of 41-42M. Actually, the 2012 yearly guidance of 174-176M was surprisingly optimistic, indicating they expect to average up to 44M of revenue quarterly.

The only shadow on the report was the fact that year-ago quarterly revenues were 45M, but this was related to a change in the distribution agreement for dental products that resulted in some frontloading of revenues in 2010. Are institutions really so bored with RTI that they simply kick the sell button on a [year-over-year] revenue drop without even looking at the quarterly trends and forecasts? Who knows.

What do you think about RTI, 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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