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8

5-Star Stocks Poised to Pop: POSCO

Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South Korean steelmaker POSCO (NYSE: PKX  ) has earned a coveted five-star ranking.

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

POSCO facts

Headquarters (Founded)

Seoul, South Korea (1968)

Market Cap

$36.23 billion

Industry

Steel

Trailing-12-Month Revenue

$35.1 billion

Management

CEO Joon-Yang Chung

CFO Dong-Hee Lee

Trailint-12-Month Return on Equity

10%

Compound Annual Revenue Growth (Over Past 3 Years)

17.3%

Cash/Debt

$7.02 billion / $11.2 billion

Competitors

ArcelorMittal (NYSE: MT  )

Sutor Technology Group (Nasdaq: SUTR  )

Other Highly Rated Steel Stocks

U.S. Steel (NYSE: X  )

Nucor (NYSE: NUE  )

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

On CAPS, 97% of the 886 members who have rated POSCO believe the stock will outperform the S&P 500 going forward. These bulls include All-Star valuemoney, who is ranked in the top 0.1% of our community, and AlexisMachine.

Late last month, valuemoney highlighted the Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) holding as a super-solid selection: "Buffett says No. 1 steel maker and commodity play. Who am I to argue. And adding to CAPS on this huge pullback."

In a pitch from the same day, AlexisMachine agrees with that bullishness. Here's an excerpt:

Longer term POSCO's earnings will increase on consolidation of the global steel industry, overseas growth initiatives, rising demand for durable goods in Asia, a better product mix, and greater control of raw materials. POSCO is also a vehicle to capitalize on the consolidation of the global steel industry and growth in durable goods demand in Asia. ... Coupled with the value priced shares of the stock now ... I view this as an excellent addition to ones portfolio at the current price it is selling for.

What do you think about POSCO, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. POSCO is a Motley Fool Income Investor pick. Berkshire is a choice of both Inside Value and Stock Advisor, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.


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5/24/2012 4:03 PM
PKX $75.05 Down -1.10 -1.44%
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