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5-Star Stocks Poised to Pop: Foster Wheeler

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Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, constructions and engineering services company Foster Wheeler (Nasdaq: FWLT  ) has earned a coveted five-star ranking.

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

Foster Wheeler facts

Headquarters (Founded)

Clinton, N.J. (1894)

Market Cap

$3.6 billion

Industry

Construction and engineering

Trailing-12-Month Revenue

$5.4 billion

Management

Chairman and CEO Raymond Milchovich
CFO Franco Baseotto

Return on Capital (Average, Past 3 Years)

46.4%

Cash / Debt

$965.8 million / $226.2 million

Competitors

KBR (NYSE: KBR  )
Fluor (NYSE: FLR  )

CAPS Members Bullish on FWLT Also Bullish on

Freeport McMoRan (NYSE: FCX  )
Transocean (NYSE: RIG  )

CAPS Members Bearish on FWLT Also Bearish on

Bank of America (NYSE: BAC  )
Citigroup (NYSE: C  )

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

On CAPS, almost 98% of the 1,759 members who have rated Foster Wheeler believe the stock will outperform the S&P 500 going forward. These bulls include JRedhawk11 and All-star pigwings6, who is ranked in the top 2% of CAPS.

In October, JRedhawk11 eyed the company as a cornerstone of a value-oriented portfolio:

Good cash, good balance sheet. It'll be relatively depressed until the global industrial gears get fully rolling again but I look to see this company go far in the next few years and beyond. They have a strong foothold in some of the major emerging world markets so that's never a bad thing.

In a pitch from a week earlier, pigswings6 echoes that sentiment and highlights Foster Wheeler's strength:

Just bought in this in real life. The P/E is below 10 on a huge company that's been around for years. Plus, the balance sheet on this company looks quasi-perfect, with more than double the amount of cash needed to pay both long and short debt. Probably won't bounce back for a while, but in the long run I believe that this company will outperform along with the other beaten down sectors.

What do you think about Foster Wheeler, 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!

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Fool contributor Jim Royal owns shares in Bank of America. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
FWLT $18.82 Down -0.16 -0.84%
Foster Wheeler Ltd… CAPS Rating: ****
FLR $49.70 Down -0.35 -0.70%
Fluor Corporation CAPS Rating: *****
KBR $26.16 Down -0.29 -1.10%
KBR, Inc. CAPS Rating: ****
RIG $43.14 Up +0.01 +0.02%
Transocean, Inc. CAPS Rating: *****
BAC $7.15 Up +0.01 +0.14%
Bank of America Co… CAPS Rating: ***
C $26.47 Down -0.19 -0.71%
Citigroup Inc CAPS Rating: ***
FCX $32.41 Down -0.16 -0.49%
Freeport-McMoRan C… CAPS Rating: ****

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