4-Star Stocks Poised to Pop: Prospect Capital
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, private equity firm Prospect Capital (NAS: PSEC) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Prospect's business and see what CAPS investors are saying about the stock right now.
Prospect facts
Headquarters (founded) | New York (1988) |
Market Cap | $1.2 billion |
Industry | Asset management |
Trailing-12-Month Revenue | $223.6 million |
Management | Chairman/CEO John Francis Barry III |
Return on Equity (average, past 3 years) | 9.1% |
Cash/Debt | $1.9 million / $574.5 million |
Dividend yield | 11.4% |
Competitors | First Reserve |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 682 members who have rated Prospect believe the stock will outperform the S&P 500 going forward.
Earlier this year, one of those Fools, c4ranch, tapped Prospect as a particularly attractive income opportunity:
Conservative loan underwriting with large collateral positions and equity provisions makes for a sound loan portfolio. Charter requires large dividend payouts. Very experienced management that has made significant purchases of their own stock make this a go to stock for both yield and potential capital gains.
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 four-star rating, Prospect 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
