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5

5-Star Stocks Poised to Pop: Cambium Learning

Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, education solutions specialist Cambium Learning Group (Nasdaq: ABCD  ) has earned a coveted five-star ranking.

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

Cambium facts

Headquarters (Founded)

Dallas (2002)

Market Cap

$168.9 million

Industry

Education services

Trailing-12-Month Revenue

$101.0 million

Management

CEO Ronald Klausner
CFO Bradley Almond

Trailing-12-Month Return on Capital

(2.7%)

Cash/Debt

$13.3 million / $169.9 million

Competitors

McGraw-Hill (NYSE: MHP  )
Plato Learning (Nasdaq: TUTR  )
LeapFrog Enterprises (NYSE: LF  )

Key Customers

Honda (NYSE: HMC  )
Deere (NYSE: DE  )

Strategic Partners

Ford Motor (NYSE: F  )
Motors Liquidation

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

On CAPS, 98.5% of the 69 members who have rated Cambium believe the stock will outperform the S&P 500 going forward. These bulls include All-Star pseud, who is ranked in the top 3% of our community, and jed71.

Two weeks ago, pseud schooled Fools on the stock's tasty risk/reward trade-off: 

Very thinly traded stock that almost nobody follows. Their trailing figures have a lot of one-time items that make the numbers look really bad. ... Looks dirt cheap even if no growth happens. Any future growth is a bonus.

In an earlier pitch, jed71 touched on the tailwinds working in Cambium's favor:

While health care and "green" initiatives have gotten a bunch of press, I don't believe many investors are paying attention to the education play. This is one of the top 3 initiatives of the current administration, and you can bet they will be throwing some big time money in its direction. ...

Since Cambium products / services support pretty standard learning initiatives (reading, writing, math, and language), it seems evident that these are the types of initiatives that will receive continued scrutiny from a testing and success standpoint. Cambium seems pretty well aligned to capitalize from this higher level of focus on education.

What do you think about Cambium, 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. Ford is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.


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