4-Star Stocks Poised to Pop: LSB Industries

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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, geothermal and water source heat pump specialist LSB Industries (NYS: LXU) has earned a respected four-star ranking.

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

LSB facts

Headquarters (founded)Oklahoma City (1968)
Market Cap$592.4 million
IndustryDiversified chemicals
Trailing-12-Month Revenue$818.0 million
ManagementFounder/Chairman/CEO Jack Golsen
CFO Tony Shelby
Return on Equity (average, past 3 years)21%
Cash/Debt$123.4 million / $80.0 million
CompetitorsAgrium
CF Industries
Continental Materials

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

On CAPS, 97% of the 585 members who have rated LSB believe the stock will outperform the S&P 500 going forward.  

Just last week, one of those bulls, All-Star TMFDeej, tapped the stock's recent plunge as a solid bargain opportunity:

While the explosion in the company's nitrogen plant will no doubt prove costly in the short run, [LSB] is well insured and should be able to rebuild the plant for its $1 million deductable. I believe that [LSB] even has loss of business coverage.

Long term the company should be fine. I see the [hacking] of $150 million off of its market cap as an overreaction.

If you want market-thumping returns, 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, LSB may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play with big potential. 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. The Motley Fool owns shares of LSB and CF. 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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