5-Star Stocks Poised to Pop: Olin
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chemical and ammunition specialist Olin (NYS: OLN) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Olin's business and see what CAPS investors are saying about the stock right now.
Olin facts
Headquarters (founded) | Clayton, Mo. (1892) |
Market Cap | $1.7 billion |
Industry | Diversified chemicals |
Trailing-12-Month Revenue | $2.0 billion |
Management | Chairman/CEO Joseph Rupp |
Return on Equity (average, past 3 years) | 16.2% |
Cash/Debt | $304.8 million / $537.4 million |
Dividend Yield | 3.6% |
Competitors | Alliant Techsystems |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 572 members who have rated Olin believe the stock will outperform the S&P 500 going forward.
Earlier last month, one of those Fools, TMFMT, tapped the stock as a solid way to play surging firearm sales:
With the recent 50% acquisition of SunBelt Chlor Alkali Partnership, (Olin now owns 100%) from PolyOne Corporation, the company is now positioned to realize greater revenue and profits from this key component of its organization. The company also highly benefits when the U.S. is present in active wars zone's and should not be majorly affected by the possible budget cuts. Bleach volumes have increased for 15 consecutive quarters, volume in third quarter was up 7% compared to same time 2010. Relocating Winchester ammunition operations in order to free itself from a union contract. Also starting up operations of low salt, high strength bleach in three different locations. Payout ratio of 29%. Low P/E of 6.91. Five year average dividend yield of 4.40%.
If you want market-beating returns, 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, Olin may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS 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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