Recs

1

4-Star Stocks Poised to Pop: Hillenbrand

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, funeral service products specialist Hillenbrand (NYSE: HI  ) has earned a respected four-star ranking.

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

Hillenbrand facts

Headquarters (Founded) Batesville, Ind. (2007)
Market Cap $1.21 billion
Industry Personal services
Trailing-12-Month Revenue $864.2 million
Management

CEO Kenneth Camp (since 2008)

CFO Cynthia Lucchese (since 2008)

Return on Equity (Average, Past 3 Years) 28.6%
Cash/Debt $198.3 million / $272.5 million
Dividend Yield 3.9%
Competitors Stewart Enterprises (Nasdaq: STEI  )

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

On CAPS, 97.5% of the 318 members who have rated Hillenbrand believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and TarynOne.

Earlier this week, robertshrestha listed several of Hillenbrand's positives: "Play on one of the few certainties of life, stable business model, solid margins and returns on capital, attractive dividend yield. A lot to like here."

In fact, Hillenbrand boasts a particularly robust three-year average operating margin of 21.5%. That's much higher than that of listed rival Stewart (12.4%), as well as surprising competitors like Costco (Nasdaq: COST  ) (2.6%) and Wal-Mart (NYSE: WMT  ) (5.9%).

CAPS member TarynOne elaborates on the bull case:

Hillenbrand is in an often overlooked area of the "diversified services" sector of the market. How on earth do you categorize a "death" stock besides categorizing it as a death stock? ... Hillenbrand largely dominates the casket market. However, Costco and even Walmart do pose a threat Hillenbrand, especially if we are returning to a sideways market. For the medium term., however, death rates will only rise and it would be unwise not to have your foot in at least one reliable company in the "death services" area.

What do you think about Hillenbrand, 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!

Interested in another easy way to track Hillenbrand? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Hillenbrand, Costco, and Wal-Mart. Motley Fool newsletter services have recommended buying shares of Hillenbrand, Costco, and Wal-Mart, as well as creating a diagonal call position in Wal-Mart. 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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

DocumentId: 1553683, ~/Articles/ArticleHandler.aspx, 5/26/2012 7:05:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/25/2012 4:04 PM
HI $18.84 Down -0.10 -0.53%
Hillenbrand, Inc. CAPS Rating: *****
WMT $65.31 Up +0.24 +0.37%
Wal-Mart Stores CAPS Rating: ****
STEI $6.32 Up +0.03 +0.48%
Stewart Enterprise… CAPS Rating: ****
COST $84.48 Down +0.00 +0.00%
Costco Wholesale CAPS Rating: *****

Advertisement