5-Star Stocks Poised to Pop: Johnson Controls

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto parts and building efficiency specialist Johnson Controls (NYS: JCI) has earned a coveted five-star ranking.

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

Johnson Controls facts

Headquarters (Founded)

Milwaukee (1885)

Market Cap

$19.7 billion

Industry

Auto parts and equipment

Trailing-12-Month Revenue

$40.8 billion

Management

Chairman/CEO Stephen Roell
CFO R. Bruce McDonald

Return on Equity (Average, Past 3 Years)

9.4%

Cash/Debt

$257 million / $5.17 billion

Dividend Yield

2.5%

Competitors

Honeywell International (NYS: HON)
Lennox International (NYS: LII)
United Technologies (NYS: UTX)

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

On CAPS, 96% of the 1,182 members who have rated Johnson Controls believe the stock will outperform the S&P 500 going forward. These bulls include ContraryDude and Turfscape.

Just last week, ContraryDude tapped Johnson Controls a solid income opportunity: "[A]nother good defensive stock, just raised dividend."

Over the next five years, Johnson Controls is even expected to grow its bottom line at a solid rate of 16% annually. That's a bit faster than competitors like Honeywell (15%), Lennox (12%), and United Tech (11%).

CAPS member Turfscape elaborates on the bull case:

[Johnson Controls] is a solid company in solid industry sectors. Their advanced battery division is poised for outstanding growth in conjunction with alternative fuel vehicles and alternative power systems (and power backup systems). Additionally, their building systems will benefit greatly from the increased demand for more efficient facilities. Companies want to drive down operational costs and tout "green" initiatives: [Johnson Controls] helps by providing systems to efficiently monitor and maintain building heat, cooling, lighting, etc ...

The drop to $30/share makes [Johnson Controls] an excellent value for the long-term.

What do you think about Johnson Controls, 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 trackJohnson Controls?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.

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