4-Star Stocks Poised to Pop: Southwest Airlines

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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, discount airline Southwest Airlines (NYS: LUV) has earned a respected four-star ranking.

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

Southwest facts

Headquarters (founded)Dallas (1967)
Market Cap$6.88 billion
IndustryAirlines
Trailing-12-Month Revenue$16.6 billion
ManagementChairman/CEO Gary Kelly
CFO Laura Wright
Return on Equity (average, past 3 years)5.1%
Cash/Debt$3.8 billion / $3.3 billion
Dividend Yield0.40%
CompetitorsAMR
Delta Air Lines
JetBlue Airways

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

On CAPS, 86% of the 1,764 members who have rated Southwest believe the stock will outperform the S&P 500 going forward.  

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

Over $7 billion in shareholders' equity yet a market cap of just over $6 billion? ... Besides the ridiculous valuation, earnings are projected to rise substantially next year and beyond. Oh yeah, add the fact that [Southwest] is a best of breed type with a formidable competitive advantage (and strong customer loyalty) as the company continues to take market share, and you have a fine investment.

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 four-star rating, Southwest 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.

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. Motley Fool newsletter services have recommended buying shares of Southwest. 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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