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5-Star Stocks Poised to Pop: Wonder Auto Technology

Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electrical auto parts manufacturer Wonder Auto Technology (Nasdaq: WATG  ) has earned an outstanding five-star ranking.

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

Wonder Auto facts

Headquarters

Jinzhou City, China

Market Cap

$349.8 million

Industry

Auto parts and equipment

Trailing-12-Month Revenue

$211.0 million

Management

CEO Qingjie Zhao (since 2006)
CFO Meirong Yuan (since 2006)

Return on Equity (Average, Past 3 Years)

10.0%

Compound Annual Revenue and Net Income Growth (Over Past 3 Years)

43% and 217%

Cash/Debt

$82.4 million / $78.0 million

Other Highly Rated Auto Parts Plays

Johnson Controls (NYSE: JCI  )
Magna International (NYSE: MGA  )
WABCO Holdings (NYSE: WBC  )

Other Highly Rated Chinese Stocks

American Oriental Bioengineering (NYSE: AOB  )
Melco Crown Entertainment (Nasdaq: MPEL  )
A-Power Energy Generation (Nasdaq: APWR  )

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

On CAPS, 96% of the 588 members who have rated Wonder Auto believe the stock will outperform the S&P 500 going forward. These bulls include All-Star edwjm, who is ranked in the top 1% of our community, and techfule.

About three months ago, edwjm brought the stock's attractive valuation (which remains relatively unchanged) to our community's attention:

Wonder Auto Technology, Inc. … engages in the design, development, manufacture, and sale of automotive electrical parts in China. It is a major producer of starters and alternators. The Chinese auto market is hot right now, and [Wonder Auto] is in the OEM business. At the current price of $10.13 as I type this, the p/e is under 15.

In a pitch from one week earlier, techfule applauded management's recent buyout of auto electronic company Jinheng Automotive:

[Wonder Auto's] latest acquisition strengthens their hand in the electronics auto parts market as we prepare to see the first all-electric Chinese cars. Rumor has it that [Buffett] is involved in bringing it to the US, with much speculation about how they can build a dealer network. ... [A]t any event, [Wonder Auto] ought to get a few pieces of that action.

What do you think about Wonder Auto, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Melco Crown is a Motley Fool Global Gains recommendation. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 3:03 PM
WATG.PK $0.85 Down +0.00 +0.00%
Wonder Auto Techno… CAPS Rating: ***
MGA $41.56 Down -0.22 -0.53%
Magna Internationa… CAPS Rating: ****
MPEL $12.10 Down -0.19 -1.55%
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JCI $30.54 Down -0.29 -0.94%
Johnson Controls,… CAPS Rating: *****

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