5-Star Stocks Poised to Pop: Thomas & Betts

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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, electrical components maker Thomas & Betts (NYSE: TNB) has earned a coveted five-star ranking.

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

Thomas & Betts facts

Headquarters (founded)

Memphis, Tenn. (1898)

Market Cap

$1.51 billion

Industry

Industrial Electrical Equipment

TTM Revenue

$2.47 billion

Management

CEO Dominic Pileggi (since 2004)
CFO Kenneth Fluke (since 2004)

Return on Equity (average, last three years)

18.5%

Competitors

Eaton (NYSE: ETN)
Amphenol (NYSE: APH)

CAPS members bullish on TNB also bullish on

General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)
Johnson & Johnson (NYSE: JNJ)

CAPS members bearish on TNB also bearish on

Western Digital (NYSE: WDC)

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

Over on CAPS, some 98% of the 233 members who have rated Thomas & Betts believe the stock will outperform the S&P 500 going forward. These bulls include bean1999 and TSIF, both of whom are ranked in the top 11% of our community.

In late January, bean1999 summed up the electric opportunity for our community: "Excellent management, low debt, back orders, solar energy and the federal recovery package."

In a pitch from February, TSIF tapped Thomas & Betts as a particularly trendy bet:

In all of the "right" infrastructure plays...electrical components for industrial, commercial, communications, and utility markets. Three segments: Electrical; Steel Structures; and Heating, Ventilation, and Air-Conditioning (HVAC). Fits the play and has a P/E of 5.8, very reasonable cash flow to debt, plus 10% margins, including 20% ROE.

What do you think about Thomas & Betts, 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. Apple is a Motley Fool Stock Advisor selection. Johnson & Johnson is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score

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