4-Star Stocks Poised to Pop: Alexander & Baldwin

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, multi-market transportation and real estate company Alexander & Baldwin (NYS: ALEX) has earned a respected four-star ranking.

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

Alexander & Baldwin facts

Headquarters (Founded)

Honolulu, Hawaii (1870)

Market Cap

$1.67 billion

Industry

Shipping

Trailing-12-Month Revenue

$1.8 billion

Management

CEO Stanley Kuriyama (since 2010)
CFO Christopher Benjamin (since 2004)

Return on Equity (Average, Past 3 Years)

3.2%

Cash / Debt

$15 million / $556 million

Dividend Yield

3.2%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 86% of the 144 members who have rated Alexander & Baldwin believe the stock will outperform the S&P 500 going forward. These bulls include udflyerz and All-Star TMFDeej, who is ranked in the top 1% of our community.

A few months ago, udflyerz tapped Alexander & Baldwin as a tempting value pick:

Hawaiian property on the books at a fraction of real value. [P]ossible chance to unlock value of land through growing sugarcane for ethanol or other green opportunities. [S]hipping business will make a comeback too eventually.

In fact, Alexander & Baldwin currently sports a cheapish price-to-book ratio of 1.5. That represents a clear discount to industry peers like C.H. Robinson (NAS: CHRW) (8.8), Hub Group (NAS: HUBG) (3.0), and St. Joe (NYS: JOE) (1.8).

CAPS All-Star TMFDeej elaborates on the borderline bargain opportunity:

I was starting to sniff around Alexander & Baldwin (ALEX) as a potential investment right before Bill Ackman announced his large stake in the company. Not surprisingly, that news caused this small company's stock to skyrocket nearly 20% and more from there. After the recent market implosion ALEX is approaching pre-Ackman announcement levels. ... I came close to buying some in real-life, but I'm not all that optimistic about the economy right now and ALEX's fortunes are a little too tied to shipping for my taste.

What do you think about Alexander & Baldwin, 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 Alexander & Baldwin?Add it to your watchlist.

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.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement