4-Star Stocks Poised to Pop: CARBO Ceramics

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ceramic proppants provider CARBO Ceramics (NYS: CRR) has earned a respected four-star ranking.

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

CARBO facts

Headquarters (founded)

Houston (1997)

Market Cap

$1.7 billion

Industry

Oil and gas equipment and services

Trailing-12-Month Revenue

$638.0 million

Management

CEO Gary Kolstad (since 2006)
CFO Ernesto Bautista III (since 2009)

Return on Equity (average, past 3 years)

17.3%

Cash/Debt

$32.0 million / $0

Dividend Yield

1.3%

Competitors

Fairmount Minerals
Compagnie de Saint-Gobain
Unimin


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

On CAPS, 94% of the 457 members who have rated CARBO believe the stock will outperform the S&P 500 going forward.

A few months ago, fellow Fool Rich Duprey (TMFCop) touched on the long-term tailwinds working in CARBO's favor:

I think the short-term picture is clouded by low natural gas prices which is causing drillers to take production offline (and causing proppant inventories to build up for CRR). But with the country flush with nat gas reserves it can't help but be a long-term bullish situation. When prices rise and drillers drill with abandon again, CARBO will prosper too.

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