4-Star Stocks Poised to Pop: Praxair
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial gases producer Praxair (NYS: PX) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Praxair's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Danbury, Conn. (1907)|
|Market Cap||$32.8 billion|
|Trailing-12-Month Revenue||$11.3 billion|
|Management||Chairman/CEO Stephen Angel|
CFO James Sawyer
|Return on Equity (average, past 3 years)||25.1%|
|Cash/Debt||$90.0 million / $6.6 billion|
|Competitors||Air Products & Chemicals|
L'Air Liquide SA
The Linde Group
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 690 members who have rated Praxair believe the stock will outperform the S&P 500 going forward.
Praxair issued bonds a while back and include share repurchase in the use of proceeds. Bond move so I did a little research to see if it was also a Foolish move.
Turns out the company is fairly priced with a solid track record of earnings and dividend growth. In fact, if the 19-year streak of [dividend] hikes continues, using record low interest borrowing to buy shares probably improves after tax cash flow in a couple of years.
Combine that with a business -- industrial gasses -- that should improve as the economy recovers and a green thumb is in order.
Of course, despite its four-star rating, Praxair may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time this article 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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