5-Star Stocks Poised to Pop: Five Star Quality Care

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, senior living community operator Five Star Quality Care (NYS: FVE) has earned a coveted (and apt!) five-star ranking.

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

Five Starfacts

Headquarters (founded)

Newton, Mass. (2000)

Market Cap

$250.2 million

Industry

Healthcare facilities

Trailing-12-Month Revenue

$1.3 billion

Management

CEO Bruce Mackey Jr. (since 2008)
CFO Paul Hoagland (since 2010)

Return on Equity (average, past 3 years)

16.7%

Cash/Debt

$32.8 million / $101.6 million

Competitors


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

On CAPS, 96% of the 237 members who have rated Five Star believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, All-Star ishfaque, succinctly summed up the Five Star bull case for our community:

One of my favorite companies at the moment. Its the way of the future ... caters to retirees 65 and above. Mostly private pay customers, little dependence on Federal Programs such as Medicaid. It sold of its cash burning institutional pharmacy business recently. While its profit margins are low, its trading at a discount to book value. It can be expected to be trading at a substantial premium to its asset. This is a top baby boomer stock.

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, Five Star 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.

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The article 5-Star Stocks Poised to Pop: Five Star Quality Care 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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