5-Star Stocks Poised to Pop: Agrium

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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, fertilizer producer Agrium (NYS: AGU) has earned a coveted five-star ranking.

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

Agrium facts

Headquarters (founded)Calgary, Canada (1931)
Market Cap$15.3 billion
IndustryFertilizers and agricultural chemicals
Trailing-12-Month Revenue$16.8 billion
ManagementCEO Michael Wilson
CFO Stephen Dyer
Return on Equity (average, past 3 years)18.7%
Cash/Debt$2.0 billion / $2.5 billion
Dividend Yield1%
CompetitorsCF Industries
PotashCorp
Yara International

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

On CAPS, 98% of the 1,781 of the members who have rated Agrium believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TMFDeej, tapped Agrium as a particularly special situation:

After successful activist adventures in Marathon Petroleum and McGraw-Hill the busy Jana Partners is at it again, this time agitating for change at fertilizer producer and retailer Agrium.

Jana has been encouraging Agrium to spin-off its business that supplies fertilizer and seeds to farmers in North America under the assumption that the market is undervaluing the operations and that they might be a buyout candidate if they were an independent company. Jana is also after [Agrium] to cut expenses and increase share buybacks.

I like the potential moves and while Agrium seems to be resisting for now Jana has been very successful in the past.

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 its five-star rating, Agrium may not be your top choice.

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The article 5-Star Stocks Poised to Pop: Agrium originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of McGraw-Hill. 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.

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