4-Star Stocks Poised to Pop: Mueller Water

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, water infrastructure specialist Mueller Water Products (NYS: MWA) has earned a respected four-star ranking.

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

Mueller Water facts

Headquarters (founded)

Atlanta

Market Cap

$738.5 million

Industry

Industrial machinery

Trailing-12-Month Revenue

$1.4 billion

Management

Chairman/CEO Gregory Hyland (since 2007)
CFO Evan Hart (since 2008)

Return on Equity (average, past 3 years)

(9.7%)

Cash/Debt

$53.7 million / $622.8 million

Competitors

American Cast Iron Pipe
McWane
Tyco International


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

On CAPS, 96% of the 1,463 members who have rated Mueller Water believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, djohn1969, summed up the situation for our community:

[S]till in turnaround mode since becoming an independent company so it has more room to run. Mueller Water is the unfortunate recipient of the most unlucky timing possible -- [Mueller] is exactly the kind of company that is most directly affected by macro-economic and housing market problems and was spun off from Walter Energy just in time for the worse housing and general economy collapse in many decades. So, how well [Mueller] will do going forward depends largely on how well our housing market and entire economy continue to recover. In other words, Mueller's recovery closely tracks that of the housing market and the economy as a whole so, if Mueller's turnaround doesn't continue, that will likely mean that we'll all have far worse problems to deal with than the price of our [Mueller] stock.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Mueller Water may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around 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 4-Star Stocks Poised to Pop: Mueller Water originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Mueller and Walter Energy. 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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