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5-Star Stocks Poised to Pop: NYSE Euronext

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, stock exchange operator NYSE Euronext (NYSE: NYX  ) has earned a coveted five-star ranking.

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

NYSE Euronext facts

Headquarters

New York

Market Cap

$7.13 billion

Industry

Specialized finance

Trailing-12-Month Revenue

$4.16 billion

Management

CEO Duncan Niederauer (since 2007)

CFO Michael Geltzeilerf (since 2008)

Return on Capital (average, past 3 years)

5.5%

Cash/Debt

$374 million / $2.54 billion

Dividend Yield

4.4%

Competitors

Nasdaq OMX Group (Nasdaq: NDAQ  )

CME Group (Nasdaq: CME  )

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

On CAPS, 97% of the 2,457 members who have rated NYSE Euronext believe the stock will outperform the S&P 500 going forward. These bulls include All-Star BoiseKen, who is ranked in the top 10% of our community, and FitzColinGerald.

About a month ago, BoiseKen summed up the NYSE Euronext bull case with just a few words: "[L]ow p/e, fat, sustainable dividend."

NYSE Euronext's position as the world's largest financial exchange group -- rapidly growing derivatives and European business -- and its reasonable valuation continue to support its five-star CAPS status. In fact, NYSE Euronext currently sports a higher dividend yield (4.4%) than that of rivals Nasdaq OMX (no dividend) and CME Group (1.6%), as well as other exchange plays like CBOE Holdings (Nasdaq: CBOE  ) (0.4%) and IntercontinentalExchange (NYSE: ICE  ) (no dividend).

CAPS member FitzColinGerald expands on the stock's growth potential:

NYSE Euronext serves as a marketplace for the trading of various financial securities. As the world's largest stock exchange by market capitalization of its listed companies, the NYSE has expanded into ETFs, derivatives, options, futures, and bonds. Such expansion demonstrates diversity in the company's business model, which will provide it with steady earnings growth over the long term.

What do you think about NYSE Euronext, 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. NYSE Euronext is a Motley Fool Rule Breakers recommendation. Nasdaq is a choice of Inside Value, and Motley Fool Options has recommended writing covered calls on it. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.


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