Why Lear 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, 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.

Lear facts

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 Capital (average, past 3 years)

28.1%

Cash/Debt

$1.4 billion / $626.3 million

Dividend Yield

1.2%

Competitors

BorgWagner

Johnson Controls

Magna International


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

On CAPS, 98% of the 111 members who have rated Lear believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, JMacSol, succinctly summed up the Lear bull case for our community: "Best of breed, plenty of growth prospects ahead, lots of cash, should be increasing dividend in the near future."

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