4-Star Stocks Poised to Pop: American 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 American Capital (NAS: ACAS) has earned a respected four-star ranking.
With that in mind, let's take a closer look at American Capital's business and see what CAPS investors are saying about the stock right now.
American Capital facts
Headquarters (founded) | Bethesda, Md. (1986) |
Market Cap | $3.0 billion |
Industry | Asset management |
Trailing-12-Month Revenue | $581.0 million |
Management | Founder/Chairman/CEO Malon Wilkus |
Return on Equity (average, past 3 years) | 18.3% |
Cash/Debt | $323.0 million / $1.2 billion |
Competitors | Ares Capital |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 2,048 members who have rated American Capital believe the stock will outperform the S&P 500 going forward.
Earlier this month, one of those Fools, All-Star Staka, helped weigh the stock's pros and cons for our community:
Positive:
- Compelling valuation
- General fear the stock gets beaten down hugely in next recession as was the case 2008 but this time debt and valuations are much lower -> much lower risk
- A big tax carry forward will contribute to future results
- Good management
Negative:
- Somewhat opaque business (contributes to bargain status)
- Q1 was a mixed bag
- Across the board insider selling
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 its four-star rating, American Capital may not be your top choice.
If that's the case, we've found a retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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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