5-Star Stocks Poised to Pop: Plum Creek Timber

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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, timberland operator Plum Creek Timber (NYSE: PCL) has earned a coveted five-star ranking.

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

Plum Creek facts

Headquarters (founded)

Seattle, Wash. (1989)

Market Cap

$4.63 billion

Industry

Specialized REIT

Trailing-12-Month Revenue

$1.61 billion

Management

CEO Rick Holley (since 1999)
CFO David Lambert (since 2006)

Return on Equity (average, last three years)

13.9%

Dividend Yield

6.0%

Competitors

International Paper (NYSE: IP)
Weyerhaeuser (NYSE: WY)

CAPS members bullish on PCL also bullish on

Johnson & Johnson (NYSE: JNJ)
General Electric (NYSE: GE)

CAPS members bearish on PCL also bearish on

Intel (NYSE: INTC)
FedEx (NYSE: FDX)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 557 of the 594 members who have rated Plum Creek -- or 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include maudipearl and nrlbuild, who is ranked in the top 7% of our community.

Three weeks ago, maudipearl highlighted several of the stock's positives: "HUGE private timber inventory, environmentally friendly and responsible, strong reputation in the forestry business. Plus the added value of the real estate makes this a pick for me."

In a pitch from last month, nrlbuild also taps Plum Creek as a fabulous way to play in the forestry:

I like the fact that you are buying both real estate and lumber with this stock. The timber can be left to grow while the lumber market is soft, so inventory is increasing at little to no cost while you wait! The real estate can be used for both continued lumber operations or other development as the market develops. You are basically invested in two commodities in which the whole is greater than the sum of its parts … they add value to each other. I like the dividend in my retirement account.

What do you think about Plum Creek Timber, 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.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Intel is a Motley Fool Inside Value selection, Johnson & Johnson is a choice of Income Investor, and FedEx is a Stock Advisor pick. The Fool owns shares of both Plum Creek Timber and Intel. The Fool has also sold covered call positions and written puts on Plum Creek Timber and sold covered calls on Intel. The Fool's disclosure policy always gets a perfect score.

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