4-Star Stocks Poised to Pop: Rio Tinto

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global mining giant Rio Tinto (NYS: RIO) has earned a respected four-star ranking.

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

Rio Tinto facts

Headquarters (founded)

London (1873)

Market Cap

$81.3 billion

Industry

Diversified metals and mining

Trailing-12-Month Revenue

$60.5 billion

Management

CEO Tom Albanese (since 2007)
CFO Guy Elliott (since 2002)

Return on Equity (average, past 3 years)

18.5%

Cash/Debt

$10.0 billion / $21.5 billion

Dividend Yield

4%

Competitors

Anglo American
BHP Billiton
Vale


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

On CAPS, 97% of the 1,658 members who have rated Rio Tinto believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, mwlove, tapped the stock as a solid long-term selection:

All those car factories being built in China need steel. [W]ho will provide the iron ore? ... The sell-off on short-term drops [in iron ore] shipments has received absurd levels here, and a rebound is on tap. Great company, big dividend, and bigger prospects over the long haul.

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 four-star rating, Rio Tinto may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers a much smaller miner with big potential. 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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