4-Star Stocks Poised to Pop: American Capital
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, private equity firm American Capital (NAS: ACAS) has earned a respected four-star ranking.
With that in mind, let's take a closer look at American Capital's business and see what CAPS investors are saying about the stock right now.
American Capital facts
Headquarters (founded) | Bethesda, Md. (1986) |
Market Cap | $3.6 billion |
Industry | Asset management |
Trailing-12-Month Revenue | $602.0 million |
Management | Founder/Chairman/CEO Malon Wilkus |
Return on Equity (average, past 3 years) | 27.1% |
Cash/Debt | $316.6 million / $988.0 million |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 2,054 of the members who have rated American Capital believe the stock will outperform the S&P 500 going forward.
A couple of months ago, one of those Fools, All-Star jwray01, tapped American Capital as an attractive bargain opportunity:
[V]ery low P/B and P/E. They invest in corporate debt on a leveraged basis. They also manage [American Capital Agency] and [American Capital Mortgage] and manage some private equity funds and collect management fees from that. They also have a huge tax loss carryover.
They got burned really badly during the 2008 liquidity crisis and ever since then it's been trading at a major discount to book value. Too low, [in my opinion].
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 a strong four-star rating, American Capital may not be your top choice.
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The article 4-Star Stocks Poised to Pop: American Capital originally appeared on Fool.com.
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