4-Star Stocks Poised to Pop: VSE
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, military contractor VSE (NAS: VSEC) has earned a respected four-star ranking.
With that in mind, let's take a closer look at VSE's business and see what CAPS investors are saying about the stock right now.
VSE facts
Headquarters (founded) | Alexandria, Va. (1959) |
Market Cap | $123.9 million |
Industry | Research and consulting services |
Trailing-12-Month Revenue | $611.7 million |
Management | CEO Maurice Gauthier (since 2008) |
Return on Equity (average, past 3 years) | 20.7% |
Cash/Debt | $368.0 thousand / $206.1 million |
Dividend Yield | 1.3% |
Competitors | General Dynamics |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 466 members who have rated VSE believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, w3steve, touched on the sustainability of VSE's business model:
A significant part of VSE's business is supporting legacy systems of the Department of Defense (DoD). In a perfect world, the DoD would replace its legacy systems and [VSE], while yielding well today, would lose significant income. Also, as wars wind down, defense spending would fall and VSE's other DoD work would go away.
But things are more likely to go on as they do now, and VSE should rise as income investors recognize its attractive [dividend yield].
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, VSE may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
The article 4-Star Stocks Poised to Pop: VSE originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of General Dynamics and Northrop. 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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