5-Star Stocks Poised to Pop: Steinway Musical Instruments

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, musical instrument maker Steinway Musical Instruments (NYS: LVB) has earned a coveted five-star ranking.

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

Steinway facts

Headquarters (founded)

Waltham, Mass. (1993)

Market Cap

$309.8 million

Industry

Leisure products

Trailing-12-Month Revenue

$348.0 million

Management

Chairman/CEO Michael Sweeney
CFO Dennis Hanson

Return on Equity (average, past 3 years)

2.8%

Cash/Debt

$40.5 million / $71.5 million

Competitors

Kawai Musical Instruments Manufacturing
Kimball International
Yamaha


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

On CAPS, 92% of the 66 of the members who have rated Steinway believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star XMFConnor, succinctly summed up the bull case for our community:

Steinway Musical Instruments has many of the attractive elements I look for in an investment: a dominant market position in its core business, solid downside protection, hidden asset value, smart and incentivized insiders, and several foreseeable catalysts all rolled into a small-cap, underfollowed stock. I believe this $25 stock is worth ~$47 (88% upside) and that there are several probable catalysts (as early as Q3 this year) that could drive the share price closer to my estimate of intrinsic value.

If you want market-topping 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, Steinway may not be your top choice.

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The article 5-Star Stocks Poised to Pop: Steinway Musical Instruments 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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