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4-Star Stocks Poised to Pop: Titanium Metals

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, titanium products manufacturer Titanium Metals (NYSE: TIE  ) earned a respected four-star ranking.

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

TIMET facts

Headquarters (Founded) Dallas (1950)
Market Cap $3.34 billion
Industry Diversified metals and mining
Trailing-12-Month Revenue $823.4 million
Management CEO Bobby O'Brien (since 2009)
CFO James Brown (since 2007)
Return on Equity (Average, Past 3 Years) 9.2%
Cash/Debt $221.9 million / $0
Competitors Allegheny Technologies (NYSE: ATI  )
Carpenter Technology (NYSE: CRS  )
RTI International Metals (NYSE: RTI  )

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

On CAPS, 96.5% of the 2,533 members who have rated TIMET believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars FoolSolo and SIO394, both of whom are ranked in the top 15% of our community.

Just yesterday, FoolSolo brought the stock's price weakness to our community's attention: "Recent pullback on [Titanium Metals] from $22 high in August seems like a good entry point. Not sure if it has corrected enough to resume yet, but I like the opportunity."

As the largest domestic producer of titanium, TIMET remains our community's favorite play on the lightweight metal. In fact, TIMET's five-year average operating margin (21%) tops that of rivals Allegheny (13.2%), Carpenter (11.5%), and RTI (12.8%), as well as more common steel plays like ArcelorMittal (NYSE: MT  ) (10.5%) and Nucor (NYSE: NUE  ) (10.9%).

CAPS All-Star SIO394 expands on the solid opportunity:

Titanium Metals Corporation is a producer of titanium melted and mill products. The Company has titanium production facilities in the United States and Europe. Not only are the insiders buying in large volume, but this can work better than speculation plays in the rare earth sector. ... I like it as a pure play as industrial demand will pick up for this metal as the economy continues to recover.

What do you think about TIMET, 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. TIMET and Nucor are Motley Fool Stock Advisor selections. The Fool owns shares of Nucor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 13, 2011, at 10:36 AM, WCHOWE wrote:

    TIE has made some good $$$ for me in the past. Just not sure right now. I think the market is setting up for a correction. TIE depends on the Airplane manufacturers, (Boeing, Airbus, etc.) Does anyone have any idea what their order outlook is like?

  • Report this Comment On January 20, 2011, at 2:55 PM, YoungDude20 wrote:

    With Beijing about to become the #2 most travelled airport in the world, I would say there is going to be a growing need for airplanes (boeing/airbus) in order to accomodate the increase in passengers in China. TIE will be producing much of the titanium that is going into boeings new aircrafts, making them lighter and more heat resistant. I personally like the BUY call for TIE under $20... wait for boeing to start pumping out their new line of aircrafts and the demand for titanium and TIE will surge.

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Related Tickers

5/25/2012 4:00 PM
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