5-Star Stocks Poised to Pop: ABB

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Swiss electrical-engineering giant ABB (NYS: ABB) has earned a coveted five-star ranking.

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

ABB facts

Headquarters (Founded)

Zurich (1883)

Market Cap

$45.6 billion

Industry

Heavy electrical equipment

Trailing-12-Month Revenue

$38.5 billion

Management

CEO Joseph Hogan (since 2008)
CFO Michel Demare (since 2005)

Return on Equity (Average, Past 3 Years)

20.0%

Cash/Debt

$5.2 billion / $9.2 billion

Dividend Yield

3.5%

Competitors

Siemens
Honeywell International
Emerson Electric


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

On CAPS, 98% of the 1,817 members who have rated ABB believe the stock will outperform the S&P 500 going forward.

Earlier this summer, one of those bulls, mwlove, tapped ABB as a particularly attractive value opportunity:

I've taken a beating on my European picks so far this year, but I'm undaunted. There are a lot of great companies on the continent, just waiting for a little spark. ABB is one of the best. Great company, bargain price, splendid dividend. ABB can survive the crisis and thrive once the recession has run its course.

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 its five-star rating, ABB may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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.

The article 5-Star Stocks Poised to Pop: ABB originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of Emerson. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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