5-Star Stocks Poised to Pop: McGrath RentCorp

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business-to-business rental company McGrath RentCorp (NAS: MGRC) has earned a coveted five-star ranking.

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

McGrath facts

Headquarters (founded)

Livermore, Calif. (1979)

Market Cap

$634.6 million

Industry

Diversified support services

Trailing-12-Month Revenue

$348.6 million

Management

CEO Dennis Kakures (since 2003)
CFO Keith Pratt (since 2006)

Return on Equity (average, past 3 years)

13.8%

Cash/Debt

$365.0 thousand / $292.1 million

Dividend Yield

3.9%

Competitors

Continental Resources
Electro Rent
Williams Scotsman


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

On CAPS, 89% of the 53 members who have rated McGrath believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, All-Star TMFDeej, succinctly tapped McGrath as an inexpensive income opportunity: "A fairly cheap company that trades at a fraction of the replacement cost of its assets and has increased its dividend (currently a solid 3.8%) for [21 consecutive] years."

If you want market-thumping 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 five-star rating, McGrath may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. 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.

The article 5-Star Stocks Poised to Pop: McGrath RentCorp 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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