4-Star Stocks Poised to Pop: Chicago Bridge & Iron

2 Recommendations

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, engineering and construction company Chicago Bridge & Iron (NYSE: CBI) has earned a respected four-star ranking. Five-star stocks have been the best performers, but our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

Chicago Bridge & Iron facts

Headquarters (Founded)

The Hague, Netherlands (1889)

Market Cap

$2.26 Billion

Industry

Construction and Engineering

Trailing-12-Month Revenue

$5.36 Billion

Management

CEO Philip Asherman (Since 2006)

CFO Ronald Ballschmiede (Since 2006)

Return on Equity (Average, Past Three Years)

10.57%

Close Competitors

Fluor (NYSE: FLR)

Foster Wheeler (Nasdaq: FWLT)

CAPS Members Bullish on CBI Also Bullish on:

Apple (Nasdaq: AAPL)

Chesapeake Energy (NYSE: CHK)

CAPS Members Bearish on CBI Also Bearish on:

UAL (Nasdaq: UAUA)

Jacobs Engineering (NYSE: JEC)

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

Over on CAPS, fully 207 of 216 of the All-Star members who have rated Chicago Bridge & Iron -- some 96% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include a pair of my fellow Fools, TMFBreakerJava and TMFDeej, both of whom are ranked in the top 1% of our community.

In June, TMFBreakerJava noted: "Chicago Bridge & Iron … is neither Chicago based nor a bridge company, is a play on energy infrastructure, a very solid bet these days IMO. ... With more than half its business outside [North America], it is insulated against the slowdown here and exposed to the rapid growth in Asia and elsewhere."

An earlier pitch from TMFDeej in February shares that bullish spirit. Our CAPS member cites the stock's falling price (which has since continued to slide) as a possible bargain opportunity. Here's an excerpt from the much longer (and detailed!) pitch:

It's not a bridge builder from Chicago, but it is an excellent investment opportunity. ... Chicago Bridge & Iron is a company that has been performing great, which serves a rapidly growing industry, generates tremendous amount of cash that it uses to buy back shares ... and make solid acquisitions (most recently Lummis), yet is available at a much cheaper price today than it was only a few short months ago despite the fact that nothing has changed. I believe this is a winning combination.

What do you think about Chicago Bridge & Iron, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so why not get started?

What do the unfolding financial crisis and ongoing market volatility mean for your money? The Fool's here with answers. Get the best of our daily commentary and analysis in your inbox simply by entering your email address in the box below.

Apple is a Stock Advisor recommendation. Chesapeake Energy is an Inside Value selection. Try any of our Foolish newsletter services free for 30 days.

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

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • On October 27, 2008, at 1:44 PM, javnnf wrote: Report this Comment

    This company should be given ZERO stars. But the great collective intelligence of 115K investors have made it a 4-star. Is this some kind of game somebody is playing?

    I don't see any comment in the recent past on this stock.

  • On October 27, 2008, at 1:58 PM, javnnf wrote: Report this Comment

    On Yahoo site I found:

    Market Cap: 813M

    PE: 172.71

    Current value: $8.5

    52-week range: 7.51-62.50

  • On October 27, 2008, at 2:22 PM, javnnf wrote: Report this Comment

    MF ought to take the responsibilty of this gross misleading its subscribers and customers. But I see that you are absolutely quite!

    Your claim for ethical nature is highly questionable. Somebody should file a class action lawsuit.

  • On October 28, 2008, at 1:49 PM, javnnf wrote: Report this Comment

    To say the least, this has been a gross miscalculation and sloppy analysis on the part of Motley Fool for CBI.

    CBI has been recommended in at least 3 letters, and since July the sticks are down by 80%. MF staff has chosen to ignore my feedback and comment on their misleading recommendations.

    Read this alternative report on CBI:

    http://seekingalpha.com/article/99788-long-ideas-for-this-vo...

    The collective intelligence of CAPS is totally bogus-- 4-star rating for this all made-up PE/growth company?

    It seems the recommendation of CBI is a black mark on MF. It was a very irresponsible and misleading-- and I won't be surprised, a flavor of "keep-away" analysts.

    How ethical you are as you claim-- this is the time you must prove!

    The 115K investor's intelligence is no better than drunk chips!!

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Related Tickers

Chicago Bridge & Iron Company N.V.

CBI Up! $5.72 +0.21 (+3.81%) 4:04 PM
CAPS Rating:
1114 Outperforms
36 Underperforms
Rate This Stock

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