5-Star Stocks Poised to Pop: Marvel

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, entertainment and licensing company Marvel (NYSE: MVL  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Marvel facts

Headquarters (Founded)

New York, N.Y. (1988)

Market Cap

$2.73 billion

Industry

Movies and Entertainment

TTM Revenue

$446.97 million

Management

CEO Isaac Perlmutter (since 2005);

CFO Kenneth West (since 2002)

Major Characters

Spider-Man, Iron Man, The Incredible Hulk, X-Men

Return on Capital (avg. last three years)

31.8%

CAPS members bullish on MVL also bullish on

Apple (Nasdaq: AAPL  ) ,

Starbucks (Nasdaq: SBUX  ) ,

Johnson & Johnson (NYSE: JNJ  )

CAPS members bearish on MVL also bearish on

Netflix (Nasdaq: NFLX  ) ,

Microsoft (Nasdaq: MSFT  ) ,

Crocs (Nasdaq: CROX  )

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

Over on CAPS, 97% of the 699 All-Star members who have rated Marvel believe the stock will outperform the S&P 500 going forward. These All-Star bulls include shop1 and wuff3t, both of whom are ranked in the top 10% of our community.

In May, shop1 reminded Fools that "Marvel has a proprietary library of over 5,000 characters, which gives the company a depth of choices for future films, licensing, publishing and toys. ... Marvel appears to be a great long-term investment, perhaps the Disney of the Y generation."

A pitch one day later from wuff3t agreed with that strong bullish sentiment, applauding management's recent strategic shift:

Given that Marvel have taken movie-making in-house, have a mind-bogglingly large collection of characters to select from, have huge insider ownership, and that they make so much money from non-theatre activities (licensing, toys etc), the world is their oyster. They can fail, of course -- everyone can fail -- but long-term, their future is largely in their own hands, and the fact that they have the conviction to form their own studio and go it alone suggests they're not happy just to rake in the smaller profits from partnering with other film studios (they could have made a reasonable profit for years just doing this). The fact that they're willing to sacrifice smaller, easier profits for the risk of going it alone impresses me.

What do you think about Marvel, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. It's 100% free, so simply click here to get started.

Try any of our Foolish newsletters today, free for 30 days, and see how the Fool can help you become a better investor, poised to take advantage of the market in all of its moods. Marvel, Apple, and Netflix are Motley Fool Stock Advisor stock picks. Microsoft and Starbucks are Inside Value selections. Johnson & Johnson is an Income Investor recommendation. Crocs has been singled out by Motley Fool Hidden Gems Pay Dirt. The Fool owns shares of Starbucks. 

Foolish 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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