5-Star Stocks Poised to Pop: CVR Partners


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen fertilizer producer CVR Partners, LP (NYS: UAN) has earned a coveted five-star ranking.

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

CVR Partners facts

Headquarters (founded)

Sugar Land, Texas (2007)

Market Cap

$1.5 billion


Fertilizers and agricultural chemicals

Trailing-12-Month Revenue

$323.8 million


CEO Byron Kelley
CFO Frank Pici

Trailing-12-Month Return on Equity



$225.6 million / $127.4 million

Dividend Yield



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

On CAPS, 98% of the 297 members who have rated CVR Partners believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, BlacknGold, highlighted the recent sale of its parent, CVR Energy, to billionaire Carl Icahn as a solid bargain opportunity:

CVR Partners seems to have fallen just on the simple observation that little information has been provided on how it fits into a plan to sell CVR Energy and maybe a little on the weaker than expected fertilizer prices this summer. I don't see how the business changes. ... Pet coke is to be provided from the adjacent oil refinery through 2027. The plant expansion next year should be good news if fertilizer prices recover. Also, the facility is next to the higher margin agricultural belt. ...

I may be a little biased, but it seems like a market overreaction to me. Either way, there's no reason for me to sell at these prices. I'll hold on and wait to see what happens. If the price slides to the mid teens I'll have to consider adding more shares.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of CF. 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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