4-Star Stocks Poised to Pop: Zoltek

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, carbon fiber maker Zoltek Companies (NAS: ZOLT) has earned a respected four-star ranking.

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

Zoltek facts

Headquarters (founded)

St. Louis (1975)

Market Cap

$273.1 million

Industry

Specialty chemicals

Trailing-12-Month Revenue

$175.8 million

Management

Founder/Chairman/CEO Zsolt Rumy
CFO Andrew Whipple

Return on Equity (average, past 3 years)

(0.2%)

Cash/Debt

$9.9 million/$10 million

Competitors

Hexcel
SLG CARBON
Toray Industries


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

On CAPS, 94% of the 753 members who have rated Zoltek believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, alroy61, succinctly summed up the opportunity:

Ongoing diversification into oil industry and auto parts applications will continue to grow the overall output. Margins are substantial and reasonable. Wind turbine applications that were hard hit by natural gas glut are not a factor in [E]urope where Vestas buys carbon fiber for turbines. ... A solid product and well-managed corporate debt structure in a company that has what the future needs. Think rubber companies in the late 1800s.

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, Zoltek may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play 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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