4-Star Stocks Poised to Pop: Diana Shipping

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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, dry bulk shipper Diana Shipping (NYS: DSX) has earned a respected four-star ranking.

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

Diana facts

Headquarters (founded)Athens, Greece (1999)
Market Cap$749.3 million
IndustryShipping
Trailing-12-Month Revenue$256.8 million
ManagementChairman/CEO Simeon Palios (since 2005)
CFO Andreas Michalopoulos (since 2006)
Return on Equity (average, past 3 years)11.5%
Cash/Debt$395.3 million / $362.1 million
CompetitorsKawasaki Kisen Kaisha
Mitsui O.S.K. Lines
Navios Maritime

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

On CAPS, 98% of the 2,524 members who have rated Diana believe the stock will outperform the S&P 500 going forward.   

A little more than a month ago, one of those Fools, NJ7, highlighted several of Diana's positives:

I am a big fan of this stock. I ran through a number of shipping stocks, all of which were loaded down with debt and had poor equity and asset returns, as well as profit margins. But Diana shipping has solid margins, stopped its dividend as the global financial crisis was growing, built up a hoard of cash, and has weathered the storm well overall. Of course, it has taken a hit, but is in dramatically better shape than its competitors. If Diana can do this in a horrible market for shippers, it should be very successful when the inevitable global recovery/baltic dry index recovery takes place.

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. Of course, despite a strong four-star rating, Diana may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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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 daysWe 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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