5-Star Stocks Poised to Pop: Brown-Forman

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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, alcoholic beverage producer Brown-Forman (NYSE: BF-B) has earned a coveted five-star ranking.

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

Brown-Forman facts

Headquarters (Founded)	Louisville, Ky. (1870)
Market Cap	$7.5 billion
Industry	Distillers and vintners
Trailing-12-Month Revenue	$2.4 billion
Management	CEO Paul Varga (since 2005) CFO Donald Berg (since 2008)
Major Brands	Jack Daniel's, Southern Comfort, Finlandia, Fetzer
Return on Equity (Average, Past 3 Years)	25.7%
Cash/Debt	$286.5 million / $915.3 million
Dividend Yield	2.3%
Competitors	Diageo (NYSE: DEO) Constellation Brands (NYSE: STZ) Fortune Brands (NYSE: FO)
CAPS Members Bullish on BF-B Also Bullish on	Altria (NYSE: MO) Johnson & Johnson (NYSE: JNJ)
CAPS Members Bearish on BF-B Also Bearish on	Intel (Nasdaq: INTC)

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

On CAPS, 97% of the 158 members who have rated Brown-Forman believe the stock will outperform the S&P 500 going forward. These bulls include mtinvest and All-Star mrindependent, who is ranked in the top 2% of our community.

Just last month, mtinvest showed investors how to be in high spirits: "Jack Daniel's whiskey, Finlandia vodka, Southern Comfort liqueur. ROE has not been below 15% the last 10 years and it has averaged [well over] 20% during the same period."

In a pitch from two days ago, mrindependent also advised Fools to drink in the dividend:

As this rally matures, I think it is a good idea to add some stable stocks to my portfolio. Brown-Forman fits the bill nicely. I found this stock with a screen that looks for companies yielding over 2% and demonstrating year over year earnings growth, low payout ratios and good interest coverage ratios. ... As a purveyor of alcoholic beverages, Brown-Forman is a classic "stable stock". Like many other stable stocks, Brown-Forman was left behind by the recent rally.

What do you think about Brown-Forman, 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!