4-Star Stocks Poised to Pop: Worthington Industries


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified metals processor Worthington Industries (NYS: WOR) has earned a respected four-star ranking.

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

Worthington facts

Headquarters (founded)

Columbus, Ohio (1955)

Market Cap

$1.2 billion



Trailing-12-Month Revenue

$2.5 billion


Chairman/CEO John McConnell
President/COO George Stoe

Return on Equity (average, past 3 years)



$35.3 million / $547.8 million

Dividend Yield



AK Steel
Gibraltar Industries
Steel Technologies

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

On CAPS, 85% of the 155 members who have rated Worthington believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, NJ7, succinctly summed up the bull case for our community:

Worthington Industries has a long and illustrious track record, great management, and is in a down industry. ... Steel is pretty cyclical, but with the global economy getting punished the last few years, I think we should be approaching an upcycle. The acquisitions management has made has put Worthington in a position of dominance in cylinder manufacturing, and the company recently expanded into cab manufacturing on top of its other steel related products. ... The two downsides are 1) fairly high debt (>500 million) and 2) low net profit margin in this sector. But I believe that with the management Worthington possesses, these issues can be addressed. The growth prospects are pretty solid in my opinion; those strategic acquisitions in the crisis of 08-09 should pay big dividends.

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, Worthington may not be your top choice.

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The article 4-Star Stocks Poised to Pop: Worthington Industries originally appeared on Fool.com.

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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