4-Star Stocks Poised to Pop: Royal Bank of Canada

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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, Royal Bank of Canada (NYSE: RY) 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 Royal Bank's business, and see what CAPS investors are saying about the stock right now.

Royal Bank facts

Headquarters (founded)

Toronto, Canada (1864)

Market Cap

$37.1 billion

Industry

Diversified banks

Trailing-12-Month Revenue

$16.1 billion

Management

CEO Gordon Nixon (since 2001)
CFO Janice Fukakusa (since 2004)

Return on Equity (average last three years)

20.7%

Dividend Yield

7.2%

Competitors

Bank of Montreal (NYSE: BMO)
CIBC (NYSE: CM)

CAPS members bullish on RY also bullish on:

ScotiaBank (NYSE: BNS)
Bank of America (NYSE: BAC)

CAPS members bearish on RY also bearish on:

Toronto-Dominion Bank (NYSE: TD)
Wells Fargo (NYSE: WFC)

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

Over on CAPS, 93% of the 460 members who have rated Royal Bank believe the stock will outperform the S&P 500 going forward. These Fools include GrantQ and nathanmcdo.

Four days ago, GrantQ tossed the stock into an attractive basket of Canadian banks:

Canadian banks are the best in the world right now. Guaranteed money-makers even in today's economy. And now they've gone through the pain of writing down bad US debt & issuing new stock, they're poised to recover strongly.

In an earlier pitch from late last month, nathanmcdo tapped Royal Bank as an ideal northern stock for the long run:

Fantastic yields, and fantastic company, the Canadian banks are a shining star in a dark dark night of the financial world ... and this stock as all financial stocks has been beat down. Currently trading at a little below its intrinsic value, and with cheap ratios, and a very high yield, that they will maintain and continue to increase. Also is the largest of the fantastic Canadian Banks.

What do you think about Royal Bank, 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.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. ScotiaBank and Bank of America are Motley Fool Income Investor picks. The Fool's disclosure policy always gets a perfect score.

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