4-Star Stocks Poised to Pop: Heckmann

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wastewater disposal specialist Heckmann (NYS: HEK) has earned a respected four-star ranking.

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

Heckmann facts

Headquarters (Founded)

Palm Desert, Calif.

Market Cap

$705 million

Industry

Diversified investments

Trailing-12-Month Revenue

$96.2 million

Management

Chairman/CEO Richard Heckmann (since 2007)

CFO Brian Anderson (since 2008)

Return on Equity (Average, Past 2 Years)

(29.7%)

Cash/Debt

$54.8 million / $70.3 million

Competitors

General Electric (NYS: GE)

Schlumberger (NYS: SLB)

Veolia Environnement (NYS: VE)

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

On CAPS, 97% of the 272 members who have rated Heckmann believe the stock will outperform the S&P 500 going forward. These bulls include gkap27 and kenjotto.

This past summer, gkap27 touched on several of the stock's positives: "Heckmann has a great management team, combined with an expanding company and Industry. Stock is underpriced with the earnings this company has already shown to be able to bring in, all while only running on 'a few cylinders.'"

Over the next five years, in fact, Heckmann is expected to grow its bottom line at a brisk rate of 28% annually. That's faster than that of listed competitors like General Electric (13%), Schlumberger (24%), and Veolia (13%).

CAPS member kenjotto expands on the outperform argument:

[Heckmann's] MO is to building a moaty business and sell it off. There is very little sizable competition, and Heckman is on a tear with building out his infrastructure and support base. His results are very solid. Once he puts the biz up on the sale block, it'll outperform even further.

What do you think about Heckmann, 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 trackHeckmann?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 Heckmann. Motley Fool newsletter services have recommended buying shares of Veolia. 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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