5-Star Stocks Poised to Pop: CapitalSource

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled commercial lender CapitalSource (NYSE: CSE) has earned a coveted five-star ranking.

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

CapitalSource facts

Headquarters (Founded)	Chevy Chase, Md. (2000)
Market Cap	$1.26 billion
Industry	Credit services
Trailing-12-Month Revenue	($329.4 million)
Management	Co-Founder/CEO John Delaney President/COO Dean Graham
Return on Equity (Average, Past 3 Years)	(1.7%)
Competitors	Bank of America (NYSE: BAC) Wells Fargo (NYSE: WFC)
CAPS Members Bullish on CSE Also Bullish on	CEMEX (NYSE: CX) General Electric (NYSE: GE)
CAPS Members Bearish on CSE Also Bearish on	Citigroup (NYSE: C) AIG (NYSE: AIG)

Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.

On CAPS, 96% of the 1,918 members who have rated CapitalSource believe the stock will outperform the S&P 500 going forward. These bulls include All-Star investorpoet2, who is ranked in the top 15% of our community, and CSElover.

Late last month, investorpoet2 applauded CapitalSource's transformation into a commercial bank:

There are still risks based on covenants on their restructured debt, but barring a complete economic collapse from here it looks like they're going to be OK. The new CapitalSource Bank should be an earnings machine once the market improves. For now, I believe book value is a good proxy for the company's worth. The current book value is around $8 per share ... that's about a double from here.

In a pitch from one month earlier, CSElover expands on the stock as a particularly bankable bet:

[CapitalSource] with no doubt has its problems with the current credit issues and financial turmoil but what makes this stock a winner is the GREAT management [led] by Delaney who predicted these problems way ahead of the game and made moves to secure its access to cheap money by buying banking branches from [Fremont Investment and Loan] for dirt. That's vision! And that is why I believe that this strong management will navigate us through this turmoil and along the way snatch up opportunities to ensure not only its survival but its success in coming years. [CapitalSource] will be great once again.

What do you think about CapitalSource, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!