4-Star Stocks Poised to Pop: Viacom

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, entertainment content company Viacom (NAS: VIAB) has earned a respected four-star ranking.

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

Viacom facts

Headquarters

New York

Market Cap

$24.7 billion

Industry

Movies and entertainment

Trailing-12-Month Revenue

$15.1 billion

Management

CEO Philippe Dauman (since 2006)
CFO James Barge (since 2010)

Trailing-12-Month Return on Equity

27.3%

Cash/Debt

$1.1 billion / $7.8 billion

Dividend Yield

2.4%

Competitors

Walt Disney
News Corp.
Time Warner


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

On CAPS, 97% of the 1,360 members who have rated Viacom believe the stock will outperform the S&P 500 going forward.

About a month ago, one of those Fools, valuemoneygreen, brought Viacom's solid fundamentals to our community's attention:

*This company has great brand names that are very popular and that brings ad dollars.
*Ten year summary ... constant revenue and income growth ... 6 billion in sales and 1.67 billion in EBIT in 2002, 15 billion in sales and 3.25 billion in EBIT in 2011.
*Key Ratios ... net margins over 12% on average ... ROE averaged over 17% last 9 years ...
*Earnings ... estimates are about 15% for the next 2 years and 14% over the next 5 years
*Forward P/E of less than 11 which would mean a earnings yield of over 9% ... ten year treasury gives you a yield of less than 2% and it also beat the S&P yield as a whole

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 a strong four-star rating, Viacom may not be your top choice.

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

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