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4-Star Stocks Poised to Pop: Celanese

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chemical maker Celanese (NYSE: CE  ) has earned a respected four-star ranking.

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

Celanese facts

Headquarters (Founded)

Dallas (2004)

Market Cap

$8.1 billion

Industry

Commodity chemicals

Trailing-12-Month Revenue

$6.1 billion

Management

Chairman/CEO David Weidman

CFO Steven Sterin

Return on Capital (Average, Past 3 Years)

7.5%

Cash/Debt

$796 million / $3.3 billion

Dividend Yield

0.4%

Competitors

Dow Chemical (NYSE: DOW  )

DuPont (NYSE: DD  )

Methanex (Nasdaq: MEOH  )

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

On CAPS, 93% of the 369 members who have rated Celanese believe the stock will outperform the S&P 500 going forward. These bulls include Derfenstein and All-Star mrindependent, who is ranked in the top 5% of our community.

Just last month, Derfenstein touched on several of Celanese's positives:

Slow and steady wins the race. Well run, and well managed equals solid products that bring home the bacon. Leader in technology for respective industries. Makes smart reinvestments.

Over the past three years, in fact, Celanese has grown its bottom line at a solid rate of 11% annually. That's much faster than competitors like Dow Chemical (-11%), DuPont (1%), and Methanex (-28%).

CAPS All-Star mrindependent elaborates on the bull case:

Celanese's boring niche in industrial chemicals is consistently profitable with high returns on invested capital. Accordingly, I believe the company can handle its very significant debt load. Although the company is very leveraged, it has taken the precaution of maintaining a large cash hoard.

What do you think about Celanese -- 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. 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 July 05, 2011, at 3:30 PM, buffalonate wrote:

    You forgot to mention that they just revised their 2013 earnings up because their new cellulosic ethanol technology will be a big driver of earnings in the future.

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5/25/2012 4:02 PM
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