4-Star Stocks Poised to Pop: Royal Bank of Canada

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian financial services giant Royal Bank of Canada (RBC) (NYS: RY) has earned a respected four-star ranking.

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

RBC facts

Headquarters (founded)

Toronto (1864)

Market Cap

$16.5 billion


Diversified banks

Trailing-12-Month Revenue

$22.6 billion


CEO Gordon Nixon (since 2001)
CFO Janice Fukakusa (since 2004)

Return on Equity (average, past 3 years)


Dividend Yield



Canadian Imperial Bank of Commerce
Bank of Nova Scotia (Scotiabank)
Toronto-Dominion Bank

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

On CAPS, 94% of the 640 members who have rated RBC believe the stock will outperform the S&P 500 going forward.

Late last month, one of those bulls, FoolishMikee, tapped RBC as a bankable opportunity:

Royal Bank of Canada is posting record earnings in two of its segments, strengthened the balance sheet, and improved asset quality with lower provision for credit losses during the most recent quarter. ...

[T]he big five Canadian banks all get 4-star CAPS ratings expect Canadian Imperial Bank of Commerce which received a 3-star. Most Fools have realised that's because they stick to conservative business models, have limited foreign exposure and well managed balance sheets. [RBC] may not be as exciting as some big-name US banks but it is worth looking into if you want some bank exposure and a yield that will beat most places you can think of.

What do you think about RBC, 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 Scotiabank. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.