4-Star Stocks Poised to Pop: Ctrip.com

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese online travel company Ctrip.com International (Nasdaq: CTRP) has earned a respected four-star ranking. While five-star stocks have been the best performers, 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 Ctrip's business, and see what CAPS investors are saying about the stock right now.

Ctrip facts

Headquarters (founded)	Shanghai, China (1999)
Market Cap	$2.09 billion
Industry	Consumer Services
TTM Revenue	$203.89 million
Management	Co-Founder/Chairman Jianzhang Liang Co-Founder/CEO Min Fan
Return on Capital (average last three years)	18.6%
Competitors	eLong (Nasdaq: LONG) Expedia (Nasdaq: EXPE)
CAPS members bullish on CTRP also bullish on	Apple (Nasdaq: AAPL) Google (Nasdaq: GOOG)
CAPS members bearish on CTRP also bearish on	Baidu.com (Nasdaq: BIDU) First Solar (Nasdaq: FSLR)

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

Over on CAPS, 4,183 of the 4,333 members who have rated Ctrip -- some 97% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include sloofg and kmorley123.

Just last week, sloofg noted that Ctrip is more of a bargain than meets the eye: "while not really cheap on the basis of trailing earnings, it's cheap on the basis of it's dominant placement in it's market, it's growth opportunity, it's management and relatively low risk."

A pitch from kmorley123 two weeks earlier shares that bullishness, elaborating on the stock's many long-term tailwinds:

The burgeoning middle class in China is not going away, even if exports to the US and other developing countries subside over the near term.

Longer term, China's middle class will grow and become accustomed to taking a vacation (at least once in a lifetime), visiting friends and relatives and traveling, both domestically and internationally.

This is a huge potential market and CTrip has a tremedous head start over competitors. Add in that the company is prudently managed and it's a winning combination.

What do you think about Ctrip, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.