5-Star Stocks Poised to Pop: Huaneng Power

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese electricity giant Huaneng Power International (NYSE: HNP) has earned a coveted five-star ranking.

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

Huaneng Power facts

Headquarters (founded)	Beijing, China (1994)
Market Cap	$8.82 billion
Industry	Independent power producers and energy traders
TTM Revenue	$9.23 billion
Management	President/CEO Jinhua Chen Vice President Fan Xiaxia
Return on Equity (average, last three years)	9.2%
Dividend Yield	5.5%
Competitors	Korea Electric Power (NYSE: KEP) AES (NYSE: AES)
CAPS members bullish on HNP also bullish on:	Aluminum Corp. of China (NYSE: ACH) Suntech Power (NYSE: STP)
CAPS members bearish on HNP also bearish on:	Ford (NYSE: F) Citigroup (NYSE: C)

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

Over on CAPS, 929 of the 953 members who have rated Huaneng -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include vitrified and All-Star maxhoffa, who is ranked in the top 3% of our community.

In January, vitrified made a simple (but commonsense) case for the stock: "China needs energy (and lots of it) to continue the growth to which it is firmly committed. [Huaneng] is well-positioned and remains a good value."

In a pitch from last week, maxhoffa elaborates on Huaneng as a potent international power play:

Agree with everyone who has problems with investing in China. It's tough to get a good read on Chinese stocks. But you (or at least I) can't just ignore the huge Red market and a power grid that will be expanding over the next 2 decades or so. [Huaneng] is proven and positioned. … Who knows about China? Certainly not me. But I'll gamble on [Huaneng] again. In theory, it should do very well for a long time. We'll see I guess.

What do you think about Huaneng Power, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.