Why Darling Is Poised to Outperform

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, food industry waste recycler DarlingInternational has earned a coveted five-star ranking.

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

Darling facts

Headquarters (Founded)

Irving, Texas (1882)

Market Cap

$2.0 billion

Industry

Agricultural products

Trailing-12-Month Revenue

$1.7 billion

Management

Chairman/CEO Randall Stuewe
CFO Colin Stevenson

Return on Equity (average, past 3 years)

17.6%

Cash/Debt

$87.7 million / $250.2 million

Competitors

Baker Commodities
Restaurant Technologies
SANIMAX USA


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

On CAPS, 98% of the 1,220 members who have rated Darling believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, tprooney3, succinctly summed up the Darling bull case for our community: "Valuation is attractive (trailing P/E of 14, P/S 1.1), margins are healthy, and their core business is stable. I think the biodiesel venture [with Valero Energy ] could lead to significant outperformance over the next 5+ years."

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Darling 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 2013." 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 Why Darling Is Poised to Outperform originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Darling International. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

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