5-Star Stocks Poised to Pop: Ampco-Pittsburgh
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cold-rolled steel equipment producer Ampco-Pittsburgh (NYS: AP) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Ampco-Pittsburgh's business and see what CAPS investors are saying about the stock right now.
Ampco-Pittsburgh facts
Headquarters (Founded) | Pittsburgh (1929) |
Market Cap | $217.7 million |
Industry | Industrial machinery |
Trailing-12-Month Revenue | $345.7 million |
Management | Chairman/CEO Robert Paul |
Return on Capital (Average, Past 3 Years) | 15.7% |
Cash/Debt | $71 million / $13.3 million |
Dividend Yield | 3.1% |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 260 members who have rated Ampco-Pittsburgh believe the stock will outperform the S&P 500 going forward. These bulls include cdubey and TMFElleMoran.
A few months ago, cdubey listed several of Ampco-Pittsburgh's positives:
- Family owned.
- Good executive compensation practices.
- Low debt.
- P/S is low compared to the industry.
- Sales are growing.
- Holds a niche market of making custom engineered metal products.
Currently, Ampco-Pittsburgh even sports a cheapish price-to-sales ratio of 0.6. That represents a discount to much larger industrial plays like General Electric (NYS: GE) (1.1), United Technologies (NYS: UTX) (1.1), and ABB (NYS: ABB) (1.3).
CAPS member TMFElleMoran expands on the Ampco-Pittsburgh outperform argument:
A well run business with a solid reputation. I don't expect high growth, but sustainable, predictable increases in sales as demand for steel increases worldwide. Compared to other companies in the steel industry, AP has the advantage of making a niche product -- cold-rolled steel -- in which they have developed a great reputation. The company is small enough to be agile, but dominant enough to call the shots. I like that combination.
What do you think about Ampco-Pittsburgh, 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!
Interested in another easy way to track Ampco-Pittsburgh?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Ampco-Pittsburgh. 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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