4-Star Stocks Poised to Pop: POSCO

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Korean steel giant POSCO (NYS: PKX) has earned a respected four-star ranking.

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

POSCO facts

Headquarters (founded)

Seoul, South Korea (1968)

Market Cap

$25.0 billion

Industry

Steel

Trailing-12-Month Revenue

$60.4 billion

Management

CEO Joon-Yang Chung
Chief Technology Officer Oh-Joon Kwon

Trailing-12-Month Return on Equity

8.1%

Cash/Debt

$5.7 billion / $23.3 billion

Dividend Yield

3.2%

Competitors

ArcelorMittal
Hyundai Steel
Nippon Steel


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

On CAPS, 97% of the 986 members who have rated POSCO believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star BlacknGold, highlighted POSCO as an attractive bargain opportunity:

The company is trading at a huge discount to fair book value. ... The steel, minerals, and mining industries never perform well when dark economic clouds are overhead, so there is some risk to rushing in now. However, I feel that plenty of risk has been priced into shares already.

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, POSCO 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 theTrackPoisedToCAPS account.

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 ArcelorMittal. 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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