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5-Star Stocks Poised to Pop: Molson Coors

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, beer maker Molson Coors Brewing (NYSE: TAP  ) has earned a coveted five-star ranking.

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

Molson Coors facts

Headquarters (founded)

Denver (1873)

Market Cap

$7.66 billion

Industry

Brewers

TTM Revenue

$5.64 billion

Management

President/CEO Peter Swinburn (since 2008)
CFO Stewart Glendinning (since 2008)

Brands

Coors Light, Molson Canadian, Keystone, Grolsch

Return on Equity (average, last three years)

6.4%

Dividend Yield

1.9%

Competitors

Anheuser-Busch InBev
Diageo (NYSE: DEO  )

CAPS members bullish on TAP also bullish on:

General Electric (NYSE: GE  )
Altria (NYSE: MO  )
Procter & Gamble (NYSE: PG  )

CAPS members bearish on TAP also bearish on:

General Motors (NYSE: GM  )
Ford (NYSE: F  )

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

Over on CAPS, 491 of the 518 members who have rated Molson Coors -- roughly 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star jyc3, who is ranked in the top 10% of our community, and bobbyabull.

Last month, jyc3 served up this simple bull case to our community: "Low P/E, high cash flow, low debt, recession resistant business."

In a more recent pitch, from last week, bobbyabull "tapped" Molson Coors as a bargain-stock brewed to perfection:

If they earn $3.60 a share for 2009 (yahoo finance) and you assume the multiple gets up to 16x at some point (reasonable for a defensive stock like this ...) you end up with a price target of $58. In the meantime, you get a dividend yielding almost 2% with the equity trading down here in the low $40's. That's my thesis anyway.

What do you think about Molson Coors, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Diageo is a choice of Income Investor. The Fool owns shares of Procter & Gamble. 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.

  • Report this Comment On January 29, 2009, at 11:36 AM, pondee619 wrote:

    As of the morning of 1/29/09:

    93 Five star stocks had a flat to positive return for the past year:

    105 Four star stocks had a similar return:

    134 Three star stocks had such a return:

    173 TWO star stocks were flat to positive and (ready for this)

    222 ONE STAR STOCKS had a flat to positive return over the past year.

    Please, what makes you think that a stocks CAPS rating has any meaning?

  • Report this Comment On January 29, 2009, at 8:02 PM, guychan wrote:

    Hear, hear Pondee.

    As much as "professional" analysts are leary of sticking a "sell" to any issue out there, seems to be that there are very few underperform ratings out there.

    Not to say that CAPS does not provide some value, but as with the pros' advise, better do your own DD.

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DocumentId: 820096, ~/Articles/ArticleHandler.aspx, 5/25/2012 8:36:10 PM

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Related Tickers

5/25/2012 4:02 PM
TAP $39.78 Up +0.27 +0.68%
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