4-Star Stocks Poised to Pop: IMAX

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker IMAX (NYS: IMAX) has earned a respected four-star ranking.

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

IMAX facts

Headquarters (Founded)

Mississauga, Canada (1967)

Market Cap

$1.32 billion

Industry

Movies and entertainment

Trailing-12-Month Revenue

$238 million

Management

CEO Richard Gelfond (since 2009)
CFO Joseph Sparacio (since 2007)

Return on Capital (Average, Past 3 Years)

12%

Cash/Debt

$18.8 million / $39.6 million

Competitors

AMC Entertainment
Regal Entertainment
SimEx-Iwerks

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

On CAPS, 93% of the 1,588 members who have rated IMAX believe the stock will outperform the S&P 500 going forward.

This past fall, one of those bulls, Yacabe, tapped the stock as a solid growth opportunity:

From what I can see, IMAX is building new theaters in China, meaning that there is rising demand for their products, and that's going to bring in income. Also, we see that there are several movies coming out that are going to help IMAX out quite a bit. ... I've also seen several reports that [IMAX stock] is overpriced. Then when you hear that, you think, is he crazy? I say that I'm not crazy. What these things paired together mean is not falling into a bottomless pit, it's going up an endless escalator. Have fun with it people.

What do you think about IMAX, 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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of IMAX. 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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