4-Star Stocks Poised to Pop: IMAX

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jumbo-movie-screen systems maker IMAX (NYS: IMAX) has earned a respected four-star ranking.

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

IMAX facts

Headquarters (founded)

Mississauga, Canada (1967)

Market Cap

$1.5 billion

Industry

Movies and entertainment

Trailing-12-Month Revenue

$243.4 million

Management

CEO Richard Gelfond (since 2009)
CFO Joseph Sparacio (since 2007)

Return on Capital (average, past 3 years)

15.8%

Cash/Debt

$21.6 million / $55.0 million

Competitors

AMC Entertainment
Regal Entertainment
SimEx-Iwerks


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

On CAPS, 93% of the 1,586 members who have rated IMAX believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, sikiliza, touched on the trends working in IMAX's favor: "Record revenues from the Hunger Games and Avengers seem to indicate that people are still going to theaters and spending money on actually watching movies and not just on concessions. Also, with many other forms of entertainment and travel getting more expensive due to inflation, people will have to make do with the movies in the short to medium term."

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, IMAX 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. Motley Fool newsletter services have recommended buying shares of IMAX. 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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