4-Star Stocks Poised to Pop: Huntsman
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chemical maker Huntsman (NYS: HUN) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Huntsman's business and see what CAPS investors are saying about the stock right now.
Huntsman facts
Headquarters (Founded) | Salt Lake City, Utah (1970) |
Market Cap | $3.34 billion |
Industry | Diversified chemicals |
Trailing-12-Month Revenue | $10.43 billion |
Management | Founder/Chairman Jon Huntsman Sr. |
Return on Equity (Average, Past 3 Years) | 13.5% |
Cash/Debt | $683 million / $4.19 billion |
Dividend Yield | 2.9% |
Competitors | 3M (NYS: MMM) Dow Chemical (NYS: DOW) DuPont (NYS: DD) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 630 members who have rated Huntsman believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars ajm101 and fellow Fool Rich Duprey (TMFCop), both of whom are ranked in the top 15% of our community.
Just last week, ajm101 included Huntsman in an attractive group of bargains: "I added a basket of specialty chemical manufacturers in the panic as they seemed most oversold."
Huntsman, in particular, sports an extra-paltry forward P/E of 6.5. That represents a discount to listed rivals like 3M (11.8), Dow (8.3), and DuPont (10.2).
Rich elaborates on the bargain opportunity:
The penny per share earnings miss didn't justify losing almost a third of its market cap. Higher oil prices certainly played a key role in the higher costs it experienced, but lousy economic numbers has caused price at the barrel to drop 10% over the past two weeks. A weaker economy isn't a net positive for the specialty chemicals maker, but the sell-off was overwrought and Huntsman should be able to bounce back from here.
What do you think about Huntsman, 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 Huntsman?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of 3M. 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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