5-Star Stocks Poised to Pop: MGE Energy

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity producer MGE Energy (NAS: MGEE) has earned a coveted five-star ranking.

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

MGE facts

Headquarters (founded)

Madison, Wis. (1855)

Market Cap

$1.0 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$546.4 million

Management

Chairman/CEO Gary Wolter
CFO Jeffrey Newman

Return on Equity (average, past 3 years)

11%

Cash/Debt

$41.2 million / $363.6 million

Dividend Yield

3.5%

Competitors

ALLETE
Integrys Energy
Wisconsin Energy


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

On CAPS, 96% of the 56 members who have rated MGE believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, camelot61, succinctly summed up the bull case for our community:

This is a conservative investment. Long standing company in stable regional market. I expect slow; stable growth ... [dividend reinvestment plan] in place. I think this stock will slightly outperform the S&P over the long term (~5-10 yr.).

Of course, despite its strong five-star rating, MGE 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 9 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 thisarticle 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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