5-Star Stocks Poised to Pop: Portfolio Recovery

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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, bad-debt collector Portfolio Recovery Associates (NAS: PRAA) has earned a coveted five-star ranking.

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

Portfolio Recoveryfacts

Headquarters (Founded)

Norfolk, Va. (1996)

Market Cap

$1.7 billion

Industry

Diversified support services

Trailing-12-Month Revenue

$520.4 million

Management

Co-Founder/Chairman/CEO Steven Fredrickson
Co-Founder/CFO Kevin Stevenson

Return on Equity (Average, Past 3 Years)

16.7%

Cash/Debt

$42.6 million / $292.9 million

Competitors

Asta Funding (NAS: ASFI)
GC Services Limited Partnership
NCO Group


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

On CAPS, 97% of the 3,119 members who have rated Portfolio Recovery believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, tiomiguel, succinctly summed up the Portfolio Recovery bull case for our community: "Passes screens for P/E vs. both expected and projected EPS growth, as well as those based on Warren Buffett's EPS growth and Return-on-Equity metrics. Also, in this cruddy economy, debt collection is sadly going to be a good bet for some time to come!"

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, Portfolio Recovery 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 TrackPoisedTo CAPS account.

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

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Portfolio Recovery Associates. Motley Fool newsletter services recommend Portfolio Recovery Associates. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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

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