Why Lear Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto parts supplier Lear has earned a coveted five-star ranking.

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

Learfacts

Headquarters (founded)

Southfield, Mich. (1917)

Market Cap

$5.1 billion

Industry

Auto parts and equipment

Trailing-12-Month Revenue

$14.6 billion

Management

CEO Matthew Simoncini (since 2011)

CFO Jeffrey Vanneste (since 2012)

Return on Equity (average, past 3 years)

28.1%

Cash/Debt

$1.4 billion / $626.3 million

Dividend Yield

1.3%

Competitors

BorgWagner

Johnson Controls

Magna International


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

On CAPS, 97% of the 109 members who have rated Lear believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star TMFDeej, brought the stock's potent catalyst to our community's attention:

I've been impressed with Mick McGuire's (Marcato Capital Management) ability to unlock value in stocks as an activist investor. Lear is his latest initiative. He's urging the company to return more money to shareholders (as he usually does) by accelerating share buybacks, raising its dividend and seeking board seats.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Lear 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.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Lear Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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