5-Star Stocks Poised to Pop: Otter Tail

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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, electricity provider Otter Tail (NAS: OTTR) has earned a coveted five-star ranking.

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

Otter Tail facts

Headquarters (founded)Fergus Falls, Minn. (1907)
Market Cap$798.6 million
IndustryElectric utilities
Trailing-12-Month Revenue$1.1 billion
ManagementCEO Edward McIntyre (since January 2012)
CFO Kevin Moug (since April 2001)
Return on Equity (average, past 3 years)1.6%
Cash/Debt$16.2 million / $475.0 million
Dividend Yield5.3%
CompetitorsALLETE
Caterpillar
J-M Manufacturing Company

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

On CAPS, 98% of the 1,018 members who have rated Otter Tail believe the stock will outperform the S&P 500 going forward.

Late last month, one of those Fools, hurricanehedge, succinctly summed up the bull case for our community:

[V]ery diversified portfolio and on top of that, no one is going to stop using electricity to heat and cool their homes and businesses no matter how bad the economy is. ... [S]o when their portfolio is made up of cheap, abundant, and green energy (wind energy and hydro-energy) this company will be set for centuries.

Of course, despite its strong five-star rating, Otter Tail may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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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