Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containership operator Seaspan has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Seaspan and see what CAPS investors are saying about the stock right now.
Majuro, Marshall Islands (2005)
Co-Founder/Co-Chairman/CEO Gerry Wang
Co-Founder/Co-Chairman Kyle Washington
Return on Equity (average, past 3 years)
$352.4 million / $4.3 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 866 members who have rated Seaspan believe the stock will outperform the S&P 500 going forward.
Has lots of cash and higher dividends than the average currently (5.8% compared to average of 3% in the stock market) and is planning on increasing dividends. Its long-term fixed rate charters also play a role in ensuring a steady income stream and cash flow. Not to mention its fleet is newer and more modern than the industry average, giving them an advantage in the next few years or so. The average age of their fleet is 6 years old, compared to industry average of 10 years old. So while everyone is making repairs to their fleets in the coming days, their ships will not be due for repairs yet. Aside from that, they are already purchasing more to add to their fleet.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Seaspan may not be your top choice.
With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery", outlines three companies that could take off when the global economy gains steam. Click here to read the full report!
The article Why Seaspan Is Poised to Keep Soaring originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Seaspan. The Motley Fool owns shares of Seaspan. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.