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4-Star Stocks Poised to Pop: CreXus Investment

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT CreXus Investment (NYSE: CXS  ) has earned a respected four-star ranking.

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

CreXus facts

Headquarters (founded)

New York (2008)

Market Cap

$674.3 million

Industry

Mortgage real estate investment trusts

Trailing-12-Month Revenue

$28.2 million

Management

Chairman/CEO Kevin Riordan

CFO Daniel Wickey

Cash/Debt

$37.13 million / $46.55 million

Dividend Yield

13.6%

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 89% of the 44 members who have rated CreXus believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Chemdawg, who is ranked in the top 5% of our community, and ArfytheSeal.

Earlier this summer, Chemdawg tapped CreXus as an attractive income opportunity: "geat dividend with minimal leverage ... should be a very safe way to outpace the market."

In fact, CreXus currently sports a debt-to-equity of only 5%. That's much lower than that of other mortgage REITs such as Anworth Mortgage (NYSE: ANH  ) (738%), Annaly Capital (NYSE: NLY  ) (577%), and Chimera (NYSE: CIM  ) (189%).

CAPS member ArfytheSeal elaborates on the CreXus bull case:

The company invests in commercial real estate (CRE) mortgages through both securities (commercial morgage backed securities, or "CMBS") and through individual mortage loans. The portfolio is managed by the folks from Annaly, a residential mortgage REIT with an excellent long-term track record. Highlights follow:

-The portfolio assets are of very good quality (right now at least), often with high public debt ratings and no delinquent loans currently.
-The company trades [more than 10%] under its book value.

What do you think about CreXus, 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 CreXus? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Annaly and Chimera. 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.


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DocumentId: 1566061, ~/Articles/ArticleHandler.aspx, 5/26/2012 3:50:59 PM

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Related Tickers

5/25/2012 4:02 PM
CXS $10.02 Down -0.06 -0.60%
CreXus Investment CAPS Rating: *****
NLY $16.70 Up +0.10 +0.60%
Annaly Capital Man… CAPS Rating: ****
CIM $2.82 Up +0.03 +1.08%
Chimera Investment CAPS Rating: ****
ANH $6.73 Up +0.02 +0.30%
Anworth Mortgage A… CAPS Rating: ***

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