5-Star Stocks Poised to Pop: Titanium Metals

11 Recommendations

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Titanium Metals (NYSE: TIE) 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 Titanium Metals' business, and see what CAPS investors are saying about the stock right now.

Titanium Metals facts

Headquarters (Founded)

Dallas, Texas (1950)

Market Cap

$2.15 billion

Industry

Industrial Metals and Minerals

TTM Revenue

$1.19 billion

Management

CEO Steven Watson (since 2006)
CFO James W. Brown (since 2007)

Return on Equity (average last three years)

29.2%

Competitors

Alcoa (NYSE: AA)
Nucor (NYSE: NUE)

CAPS members bullish on TIE also bullish on

General Electric (NYSE: GE)
NVIDIA (Nasdaq: NVDA)

CAPS members bearish on TIE also bearish on

Bank of America (NYSE: BAC)
Aircastle

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

Over on CAPS, fully 377 of the 391 All-Star members who have rated Titanium Metals -- some 96% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include Imperial1964 and TMFActionJackson, both of whom are ranked in the top 10% of our community.

Less than a month ago, Imperial1964 noted that the stock "has dropped out of favor primarily to the production delays at Boeing (NYSE: BA) and Airbus and the issues of the major U.S. airlines. However, titanium demand should increase as the aerospace giants get their act together, the government starts investing in its military, and fuel economy mandates force automakers to use lighter weight materials."

A pitch from TMFActionJackson on the same day shares that contrarian spirit, writing:

Oversold due to short term outlook of commercial airline industry.

No. 1 in titanium production market with great long term expected demand.

ROE 18%, trading at 11 times 2008 expected earnings would be over $23/share if trading at 3 year historical P/E ratio.

Long term pick.

What do you think about Titanium Metals, 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 simply click here to get started.

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NVIDIA is a Motley Fool Stock Advisor recommendation. Bank of America is an Income Investor 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 03, 2008, at 2:39 PM, bizcardnut07 wrote: Report this Comment

    Here's another example of the CAPS being dead wrong. I thought this was a good company and along with the majority of CAPS players rated it an outperform. Of course, it dives to new lows today. If you are reading this, my advice is to never pay attention to the CAPS rating. This is the second 5-star CAPS stock that I bought and I lost my shirt on both of them. CAPSmembers only rate stocks, they don't buy them with there own money. CAPS, the biggest joke besides Cramer.

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