4-Star Stocks Poised to Pop: USEC
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, enriched-uranium supplier USEC (NYS: USU) has earned a respected four-star ranking.
With that in mind, let's take a closer look at USEC's business and see what CAPS investors are saying about the stock right now.
USEC facts
Headquarters (Founded) | Bethesda, Md. (1993) |
Market Cap | $291.4 million |
Industry | Consumable fuels |
Trailing-12-Month Revenue | $2.07 billion |
Management | CEO John Welch (since 2005) CFO John Barpoulis (since 2006) |
Return on Equity (Average, Past 3 Years) | 1.7% |
Cash/Debt | $340.2 million / $615 million |
Competitors | Cameco (NYS: CCJ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 1,410 members who have rated USEC believe the stock will outperform the S&P 500 going forward. These bulls include All-Star SuperCharge, who is ranked in the top 5% of our community, and ws6transam84.
This past summer, SuperCharge tapped the stock as a potent choice for less risk-averse Fools: "Speculative pick on Nuke energy and that the DOE loan guarantee will fall into place soon and allow USEC to complete the American Centrifuge Project. Stock price is near historic lows pending the DOE decision."
In fact, USEC currently sports a particularly paltry price-to-cash flow ratio of 3.5. That represents a discount to other uranium plays like Cameco (14.9) and Denison Mines (ASE: DNN) (15.0).
CAPS member ws6transam84 elaborates on the bargain opportunity:
Beaten down by world politics, we have yet to see a competing source of viable large-scale energy production that is not a source of greenhouse gas. Therefore, once the world has tired of paying for the limited resource of LNG & coal, they will revisit nuclear energy, note the safety record of power plants built post-1979, and demand for uranium will return. So shall demand for USEC in the long-term.
What do you think about USEC, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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