4-Star Stocks Poised to Pop: Crawford & Company

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, claims management provider Crawford & Company (NYS: CRD.B) has earned a respected four-star ranking.

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

Crawford facts

Headquarters (founded)

Atlanta (1941)

Market Cap

$256.1 million

Industry

Insurance broker

Trailing-12-Month Revenue

$1.1 billion

Management

CEO Jeffrey Bowman (since 2007)

CFO W. Bruce Swain, Jr. (since 2006)

Return on Capital (average, past 3 years)

12.7%

Cash/Debt

$77.6 million / $214.9 million

Dividend Yield

1.7%

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

On CAPS, 89% of the 44 members who have rated Crawford believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, All-Star joryko, tapped Crawford as a particularly timely bargain pick:

  • Oversold with the recent drop in price.

  • 2012 EPS: 52 to 62 cents expected. Sets forward PE somewhere around 7 or 8.

  • $1.44 in cash per share and manageable debt at over $200 million.

  • Holds an equity return of 38 to 40% and expects to fire up its $0.02 quarterly dividend in Q2 again.

  • Expected 10% decrease in revenues for 2012 has played a part in the stock's decline but it has been overdone as [Crawford] plummeted more than 30%.

  • I see it as a good valuation play for the next year or so, as it (hopefully) rebounds back to the $6 to $7 mark.

What do you think about Crawford, 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 new TrackPoisedTo CAPS account.

At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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