5-Star Stocks Poised to Pop: Siemens
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, German industrial giant Siemens (NYS: SI) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Siemens' business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Munich (1847)|
|Market Cap||$83.1 billion|
|Trailing-12-Month Revenue||$95.8 billion|
|Management||CEO Peter Loescher (since 2007)|
CFO Joe Kaeser (since 2006)
|Return on Equity (Average, Past 3 Years)||15.8%|
|Cash/Debt||$18.4 billion / $23.4 billion|
|Competitors||ABB (NYS: ABB) |
General Electric (NYS: GE)
United Technologies (NYS: UTX)
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 842 members who have rated Siemens believe the stock will outperform the S&P 500 going forward. These bulls include mwlove and fellow Fool Rich Smith (TMFDitty), who is ranked in the top 1% of our community.
Earlier this fall, mwlove tapped Siemens as a timely turnaround opportunity: "A solid industrial with a great dividend. Beaten-down in recent months, but ready to rise again."
In fact, Siemens currently sports a cheapish P/E of 10.4. That represents a discount to industry peers like ABB (13.6), General Electric (13.2), and United Technologies (13.7).
CAPS All-Star TMFDitty elaborates on the Siemens bull case:
I'm suspicious of the 33% growth rate that Yahoo Finance is quoting on this stock. That said, 12 times free cash flow is not too high a price to pay for Germany's "mini-GE." And the company pays me a nice 4.1% divvy while I wait for Mr. Market to notice the value here.
What do you think about Siemens, 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!
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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.