5-Star Stocks Poised to Pop: AZZ

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electrical equipment maker AZZ (NYS: AZZ) has earned a coveted five-star ranking.

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

AZZ facts

Headquarters (Founded)

Fort Worth, Texas (1956)

Market Cap

$499.4 million

Industry

Heavy electrical equipment

Trailing-12-Month Revenue

$432.6 million

Management

CEO David Dingus (since 2001)

CFO Dana Perry (since 2004)

Return on Equity (Average, Past 3 Years)

17.1%

Cash/Debt

$149.1 million / $225 million

Dividend Yield

2.5%

Competitors

ABB (NYS: ABB)

Eaton (NYS: ETN)

General Electric (NYS: GE)

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

On CAPS, 98% of the 792 members who have rated AZZ believe the stock will outperform the S&P 500 going forward. These bulls include polterziets and GingerTwin.

This past summer, polterziets tapped AZZ as an attractive total return opportunity: "Growing company with healthy dividend -- what a great combo! Also has solid margins and liquidity compared to industry."

In fact, AZZ boasts a solid three-year average operating margin of 17.2%. That's higher than that of much larger rivals like ABB (13.1%), Eaton (8%), and GE (9.4%).

CAPS member GingerTwin expands on the outperform argument:

AZZ is not new, but has a strong position in its sector. And this sector is growing out of necessity due to the use of power by almost everyone. And remember, the number of those people is rising, as well as the increase of devices and equipment that demand energy.

What do you think about AZZ, 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 trackAZZ?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 AZZ. Motley Fool newsletter services have recommended buying shares of ABB. 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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