5-Star Momentum Stocks Set to Keep Soaring: Nationstar Mortgage

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage servicer Nationstar Mortgage Holdings (NYS: NSM) has earned a coveted five-star ranking.

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

Nationstar facts

Headquarters (founded)

Lewisville, Texas (1994)

Market Cap

$3.0 billion


Thrifts and mortgage finance

Trailing-12-Month Revenue

$452.1 million


CEO Jay Bray (since October 2011)
COO Harold Lewis, Jr. (since September 2012)

Trailing-12-Month Return on Equity


Cash / Debt

$115.2 million / $3.7 billion


DHI Mortgage
JPMorgan Chase
PHH Mortgage

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

On CAPS, all of the 16 members who have rated Nationstar believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, NYPaperman, succinctly summed up the Nationstar bull case for our community:

Housing is recovering (slowly), credit is improving (slowly), and all the while non-bank Nationstar Mortgage Holdings has continued to buy up mortgage portfolios and in turn is making great profits. Not being a bank [Nationstar] has more latitude in handling its assets. This is a very interesting sector.

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, Nationstar 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 the TrackPoisedTo CAPS account.

The article 5-Star Momentum Stocks Set to Keep Soaring: Nationstar Mortgage originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of JPMorgan Chase. 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.