Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, trucking and logistics company Landstar System (Nasdaq: LSTR ) earned a respected four-star ranking.
With that in mind, let's take a closer look at Landstar's business and see what CAPS investors are saying about the stock right now.
Landstar facts
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Headquarters (Founded)
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Jacksonville, Fla. (1968)
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Market Cap
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$1.95 billion
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Industry
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Trucking
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Trailing-12-Month Revenue
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$2.36 billion
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Management
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CEO Henry Gerkens (since 2004)
CFO James Gattoni (since 2007)
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Return on Capital (Average, Past 3 Years)
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23.8%
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Cash/Debt
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$79.3 million / $149.6 million
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Competitors
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JB Hunt Transport Services (Nasdaq: JBHT )
Pacer International (Nasdaq: PACR )
UTi Worldwide (Nasdaq: UTIW )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 200 members who have rated Landstar believe the stock will outperform the S&P 500 going forward. These bulls include choicelaw and FutureMonkey.
A couple of months ago, choicelaw tapped the stock as a logistical dream: "Shipping and logistics undervalued as a whole, Landstar is solid going forward."
Landstar's attractive valuation and capital-light business model make it an increasingly popular play on the growing trend of logistics outsourcing. Thanks to powerful network effects, Landstar's three-year average return on capital (23.8%) easily tops that of rivals JB Hunt (16.8%), Pacer (8.6%), and UTi Worldwide (6.4%), as well as other transportation stocks like Expeditors International of Washington (Nasdaq: EXPD ) (19.7%) and YRC Worldwide (Nasdaq: YRCW ) (-15%).
CAPS member FutureMonkey elaborates on the Landstar bull case:
Cyclical yes, but asset light business model provides for strong margin protection even in the down times. By controlling the expense side when demand is low company maintains profitablility and cash flow (although at a lower amount). Wide moat, difficult to replicate network. Should be a strong outperform even in uncertain economy.
What do you think about Landstar, 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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