4-Star Stocks Poised to Pop: Aegion


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial pipeline services specialist Aegion (Nasdaq: AEGN) has earned a respected four-star ranking.

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

Aegion facts

Headquarters (Founded)

Chesterfield, Mo. (1980)

Market Cap

$618.5 million


Construction and engineering

Trailing-12-Month Revenue

$921.2 million


CEO J. Joseph Burgess (since 2008)
CFO David Martin (since 2007)

Return on Equity (Average, Past 3 Years)



$108 million / $123.5 million

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

On CAPS, 94% of the 201 members who have rated Aegion believe the stock will outperform the S&P 500 going forward. These bulls include latinoeconomist and NHWeston.

This past summer, latinoeconomist listed a few of Aegion's positives: "Strong growth, focus on profitability, currently undervalued."

In fact, Aegion currently sports a cheapish forward P/E of 9.6. That represents a discount to more common construction and engineering plays like Fluor (NYS: FLR) (14.1), Jacobs Engineering (NYS: JEC) (12.8), and KBR (NYS: KBR) (10.5).

CAPS member NHWeston elaborates on the bargain opportunity:

This company is badly down from its highs and for no particular reason than the current financial malaise. Yet, it straddles a number of key growth industries and commodities -- water, sewers, pipelines, purification, infrastructure. They may not make big-pig buck off of Irene, but the hurricane has helped to demonstrate how very badly even rural areas need pipeline upgrades and replacement. ...[S]olid long term play just now being discovered.

What do you think about Aegion, 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 Aegion?Add it to your watchlist.

At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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