5-Star Stocks Poised to Pop: CVR Partners

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen fertilizer producer CVR Partners, LP (NYS: UAN) has earned a coveted five-star ranking.

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

CVR Partners facts

Headquarters (founded)Sugar Land, Texas (2007)
Market Cap$1.5 billion
IndustryFertilizers and agricultural chemicals
Trailing-12-Month Revenue$323.8 million
ManagementCEO Byron Kelley
CFO Frank Pici
Trailing-12-Month Return on Equity32.4%
Cash/Debt$225.6 million / $127.4 million
Dividend Yield10.5%
Competitors

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

On CAPS, 98% of the 297 members who have rated CVR Partners believe the stock will outperform the S&P 500 going forward.  

Just yesterday, one of those bulls, BlacknGold, highlighted the recent sale of its parent, CVR Energy, to billionaire Carl Icahn as a solid bargain opportunity:

CVR Partners seems to have fallen just on the simple observation that little information has been provided on how it fits into a plan to sell CVR Energy and maybe a little on the weaker than expected fertilizer prices this summer. I don't see how the business changes. ... Pet coke is to be provided from the adjacent oil refinery through 2027. The plant expansion next year should be good news if fertilizer prices recover. Also, the facility is next to the higher margin agricultural belt. ...

I may be a little biased, but it seems like a market overreaction to me. Either way, there's no reason for me to sell at these prices. I'll hold on and wait to see what happens. If the price slides to the mid teens I'll have to consider adding more shares.

If you want market-topping 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 five-star rating, CVR Partners 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. The Motley Fool owns shares of 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners