4-Star Stocks Poised to Pop: Vina Concha y Toro

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chilean wine maker Vina Concha y Toro (NYSE: VCO) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

Vina Conch a facts 

Headquarters (founded)

Santiago, Chile (1883)

Market Cap

$1.09 billion

Industry

Distilleries and wineries

TTM Revenue

$460.43 million

Return on Equity (average, last three years)

13.7%

Competitors

Compania Cervecerias Unidas (NYSE: CCU)
Vina San Pedro

CAPS members bullish on VCO also bullish on

Vale (NYSE: RIO)
Petroleo Brasileiro (NYSE: PBR)

CAPS members bearish on VCO also bearish on

Procter & Gamble (NYSE: PG)
Netflix (Nasdaq: NFLX)
Cal-Maine Foods (Nasdaq: CALM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 55 of the 60 members who have rated Vina Concha -- some 92% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars OtherOracleOfOMA and 2k1, both of whom are ranked in the top 3% of our community.

In late November, OtherOracleOfOMA touched on why Vina Concha is a timely opportunity: "Rich people like to drink wine, especially now after viewing their brokerage account statement."

In a pitch from two days later, 2k1 shares that bullishness and elaborates on the company's low-cost liquor advantage:

One of the best and broadest wine makers around. Their high-end stuff (Melchor) is as good as any cabernet in the world but cheaper; mid-level CyT and Casillero are some of the best bargains on the shelf; and their low-end stuff (Xplorador) sells like hot cakes. Chilean cabernets, carmeneres, and merlots will soon achieve the price level of the rest of the world's pricey reds and [Vina Concha] will reap the rewards.

What do you think about Vina Concha, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. Vina Concha and Petrobras are Motley Fool Income Investor picks. Netflix is a selection of Stock Advisor. The Fool owns shares of Procter & Gamble. The Fool's disclosure policy always gets a perfect score.

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PBR $52.86 Up +1.58 +3.08%
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The Procter & Gamb… CAPS Rating: *****
NFLX $58.23 Down -0.40 -0.68%
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CCU $38.09 Up +2.04 +5.66%
Compania Cerveceri… CAPS Rating: *****
RIO $17.42 Down +0.00 +0.00%
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VCO $40.50 Up +0.83 +2.09%
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CALM $27.87 Up +0.43 +1.57%
Cal-Maine Foods, I… CAPS Rating: *****

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