4-Star Stocks Poised to Pop: International Game

Recs

7

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, International Game Technology (NYSE: IGT), which makes slot machines and casino management systems, has earned a respected four-star ranking.

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

International Game facts

Headquarters (founded)

Reno, Nev. (1980)

Market Cap

$4.89 billion

Industry

Casinos and Gaming

Trailing-12-Month Revenue

$2.39 billion

Management

CEO Patti Hart (since April 2009)

CFO Patrick Cavanaugh (since January 2009)

Return on Equity (average, last three years)

24.3%

Dividend Yield

1.5%

Competitors

WMS Industries (NYSE: WMS)

Shuffle Master (Nasdaq: SHFL)

CAPS Members Bullish on IGT Also Bullish on

Apple (Nasdaq: AAPL)

General Electric (NYSE: GE)

CAPS Members Bearish on IGT Also Bearish on

MGM Mirage (NYSE: MGM)

Capital One Financial (NYSE: COF)

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

Over on CAPS, fully 627 of the 675 members who have rated International Game -- some 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Myshkin69, who is ranked in the top 20% of our community, and KyrieLoon.

Early this month, Myshkin69 summed up the bull case in one simple sentence: "Automated casino games will thrive as gaming locations continue to expand in the US and worldwide."

In a pitch from two days later, Myshkin69 expands on why the stock is all set to hit jackpot:

This is the company that will supply the next generation of slot machines. The gaming industry was poised to migrate to a central-server machine architecture last summer, but the market meltdown prevented the capital expenditure. As the gamblers begin to come back to the casinos, the first casino with the next generation of slot machine will gain market share dominance -- and reduce slot costs at the same time. [International Game] has the handle on the slot market.

What do you think about International Game, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Like this article? Get our best articles delivered direct to your inbox at no cost. Sign up for Foolwatch Weekly by entering your email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. 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.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 930485, ~/Articles/ArticleHandler.aspx, 11/23/2009 3:43:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
An Open Letter to the Federal Reserve

Related Tickers

11/20/2009 4:00 PM
GE $15.59 Down -0.17 -1.08%
General Electric C… CAPS Rating: ****
SHFL $8.55 Up +0.01 +0.12%
Shuffle Master, In… CAPS Rating: **
COF $37.70 Down -0.64 -1.67%
Capital One Financ… CAPS Rating: *
AAPL $199.92 Down -0.59 -0.29%
Apple, Inc. CAPS Rating: ***
MGM $10.71 Down -0.52 -4.63%
MGM Mirage CAPS Rating: **
WMS $40.77 Down -0.49 -1.19%
WMS Industries, In… CAPS Rating: **
IGT $19.44 Down -0.13 -0.66%
International Game… CAPS Rating: ***

Community: Investing Wiki

Term Of The Hour

Moral hazard: Moral hazard is essentially a situation or risk that party has been dishonest in their business dealings.

Want to learn more or edit this definition?
Click here to read more!