5-Star Stocks Poised to Pop: Craft Brew Alliance

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, craft beer specialist Craft Brew Alliance (NAS: BREW) has earned a coveted five-star ranking.

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

Craft Brew facts

Headquarters (founded)

Portland, Ore. (1981)

Market Cap

$126.3 million

Industry

Brewers

Trailing-12-Month Revenue

$149.2 million

Management

CEO Terry Michaelson (since 2008)
CFO Mark Moreland (since 2008)

Return on Equity (average, past 3 years)

4.2%

Cash/Debt

$800 thousand / $14.4 million

Competitors

Anheuser-Busch
Diageo
MillerCoors


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

On CAPS, 95% of the 114 members who have rated Craft Brew believe the stock will outperform the S&P 500 going forward.

Last year, one of those Fools, NHWeston, succinctly summed up the opportunity:

Craft is in an interesting and potentially very profitable situation. It brews a number of certifiable craft beers with breweries strategically located in the Northwest. ... As such, it is still a craftbeer but is not localized as so many names are. ... Second, Craft makes good beers, not mass produced drek, a danger to brewers like Sam Adams and a reality with big names. Finally, they have a number of tie ins with the Bud Boys, so the possibility of a buyout is very real.

Of course, despite its five-star rating, Craft Brew may not be your top choice. If that's the case, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play with big potential. 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 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 Diageo. 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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