4-Star Stocks Poised to Pop: American Capital Agency

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap mortgage REIT American Capital Agency (Nasdaq: AGNC) has earned a respected four-star ranking.

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

American Capital Agency facts

Headquarters (Founded)

Bethesda, Md. (2008)

Market Cap

$533.7 million

Industry

Mortgage REIT

Trailing-12-Month Revenue

$70.5 million

Management

Chairman/CEO Malon Wilkus
CFO John Erickson

Cash

$69.2 million

Trailing-12-Month Dividend Yield

18.5%

Other REITs

Simon Property Group (NYSE: SPG)
Vornado Realty Trust (NYSE: VNO)

CAPS Members Bullish on AGNC Also Bullish on

Annaly Capital Management (NYSE: NLY)
General Electric (NYSE: GE)

CAPS Members Bearish on AGNC Also Bearish on

Kimco Realty (NYSE: KIM)
AIG (NYSE: AIG)

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

On CAPS, 94% of the 141 members who have rated American Capital believe the stock will outperform the S&P 500 going forward. These bulls include lion1937 and All-Star TSIF, who is ranked in the top 1% of our community.

Last month, lion1937 tapped American Capital as a particularly timely way to make some income: "Real Estate is down in most States, opportunities are tremendous for companies like [American Capital], good management team is of the essence in such an environment, attractive dividends will bring in more investors, making the stock a buy on various rating scales."

In a pitch from two weeks later, TSIF also advises Fools to capitalize with American Capital:

American Capital Agency invests in pass-through securities and mortgages whose principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government sponsored entity. While the rapidly climbing debt could spell trouble if not managed carefully, it is used to purchase even more secured/guaranteed loans. American Capital is growing rapidly. ... Dividends, while not guaranteed, and hard to determine on such a short track record are on track for 20%. Given some appreciation and modest S&P growth, American Capital has the makings of a CAPS winner.

What do you think about American Capital, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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