4-Star Stocks Poised to Pop: DreamWorks
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, animated-movie maker DreamWorks Animation (NAS: DWA) has earned a respected four-star ranking.
With that in mind, let's take a closer look at DreamWorks' business and see what CAPS investors are saying about the stock right now.
DreamWorks facts
Headquarters (founded) | Glendale, Calif. (1985) |
Market Cap | $1.5 billion |
Industry | Movies and entertainment |
Trailing-12-Month Revenue | $678.6 million |
Management | Co-Founder/CEO Jeffrey Katzenberg |
Return on Equity (average, past 3 years) | 9.6% |
Cash/Debt | $81.2 million / $0 |
Competitors | News Corp. |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 1,182 members who have rated DreamWorks believe the stock will outperform the S&P 500 going forward.
A few months ago, one of those bulls, greedwhenfearful, tapped DreamWorks as a particularly solid bargain opportunity:
Never in the company's history has the stock been so low. Trading at book value ... these are [Warren Buffett] prices. ... My biggest concern is the home entertainment decline and the future of theaters in general. ... With a low valuation, no debt ... I think it's a good time to bet. Can you imagine a world where our children don't watch cartoons? I can't.
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, DreamWorks may not be your top choice.
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The article 4-Star Stocks Poised to Pop: DreamWorks originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Walt Disney. Motley Fool newsletter services have recommended buying shares of DreamWorks Animation and Walt Disney. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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