5-Star Stocks Poised to Pop: Tata Motors

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Indian automaker Tata Motors (NYS: TTM) has earned a coveted five-star ranking.

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

Tata facts

Headquarters (founded)

Mumbai, India (1945)

Market Cap

$15.8 billion

Industry

Automobile manufacturers

Trailing-12-Month Revenue

$29.8 billion

Management

Chairman Ratan Tata
CFO C. Ramakrishnan

Trailing-12-Month Return on Capital

17.0%

Cash/Debt

$3.0 billion / $8.6 billion

Dividend Yield

1.6%

Competitors

Ford
General Motors
Suzuki Motor


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

On CAPS, 97% of the 2,734 members who have rated Tata believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, asprice81, summed up the bull case for our community:

With the economic growth that there is in India the middle class will only continue to grow and will begin to consume more goods such as Tata's affordable cars. On a per capita basis car ownership in India is very low. ... India's rates are near the bottom of the list of nations with countries such as Sierra Leone and Haiti sharing the same rate. If sustainable rates of growth are to be believed then Tata Motors should be a profitable beneficiary well into the future.

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. Of course, despite a strong five-star rating, Tata may not be your top choice.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of Ford and GM, as well as creating a synthetic long position in Ford. 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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