5-Star Stocks Poised to Pop: Sun Hydraulics

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hydraulic valve and manifold maker Sun Hydraulics (Nasdaq: SNHY) has earned a coveted five-star ranking.

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

Sun Hydraulics facts

Headquarters (founded)

Sarasota, Fla. (1970)

Market Cap

$204.0 million

Industry

Industrial machinery

TTM Revenue

$178.3 million

Management

President/CEO Allen Carlson (since 2000)
CFO Tricia Fulton (since 2006)

Return on Equity (average, last three years)

26.2%

Dividend Yield

2.9%

Competitors

Textron (NYSE: TXT)
Sauer-Danfoss (NYSE: SHS)

CAPS members bullish on SNHY also bullish on:

Apple (Nasdaq: AAPL)
Johnson & Johnson (NYSE: JNJ)

CAPS members bearish on SNHY also bearish on:

Nuance Communications (Nasdaq: NUAN)
A-Power Energy (Nasdaq: APWR)

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

Over on CAPS, 1,372 of the 1,383 members who have rated Sun -- or 99% -- believe the stock will outperform the S&P 500 going forward. These bulls include my fellow Fool Matt Koppenheffer (TMFKopp) and All-Star cclogic77, who is ranked in the top 7% of our community.

Two weeks ago, Matt tapped the stock as a tasty income and turnaround play: "Solid dividend and just a generally all-around well-run company. Will take its lumps during the slowdown, but its strong balance sheet should help it see the other side."

In a pitch from one day earlier, cclogic77 uses heavy All-Star support to help support the bull argument:

This popped up in a screen for companies with over 200 all-star outperforms and 5 or less all-star underperforms. Further inspection revealed great financials and a bright outlook. No debt and very little liabilities, strong cash flows, and very strong earnings growth over the past 5 years. The current economy presents a great buying opportunity.

What do you think about Sun Hydraulics, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 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. Sun Hydraulics and Nuance are Motley Fool Hidden Gems picks. Apple is a Stock Advisor selection, and Johnson & Johnson is a choice of Income Investor. 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 March 12, 2009, at 11:42 AM, catoismymotor wrote:

    I own SNHY. After reading eveything I could find on them I bought and plan to hold for the next five to ten years. I am so impressed by this company that if I could I would buy and wear a baseball cap with their logo on it.

  • Report this Comment On March 16, 2009, at 11:07 PM, dick2246 wrote:

    I worked in the hydraulics business for over 40 years and have used Sun's products in the design of complex equipment for Space Shuttle Launch equipment and for other applications like farm equipment. The products worked well, were easy to maintain and very cost effective. That is why I own this company.

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