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4-Star Stocks Poised to Pop: Manitowoc

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, heavy-equipment maker Manitowoc (NYSE: MTW  ) has earned a respected four-star ranking.

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

Manitowoc facts

Headquarters (Founded) Manitowoc, Wis. (1853)
Market Cap $1.12 billion
Industry Farm and construction machinery
Trailing-12-Month Revenue $3.32 billion
Management

Chairman/CEO Glen Tellock

CFO Carl Laurino

Return on Capital (Average, Past 3 Years) 6.2%
Cash/Debt $83.8 million / $2.09 billion
Dividend Yield 0.9%

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

On CAPS, 97% of the 1,808 members who have rated Manitowoc believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and shake656.

Earlier this week, robertshrestha tapped Manitowoc as a potent bargain opportunity: "Hammered down big time, should fly with any sign of recovery, global growth potential, attractive price multiples."

In fact, Manitowoc currently sports a paltry price-to-sales multiple of 0.3. That represents a clear discount to other construction equipment stocks like Caterpillar (NYSE: CAT  ) (1.0), Deere (NYSE: DE  ) (1.0), and Joy Global (Nasdaq: JOYG  ) (1.9).

CAPS member shake656 expands on Manitowoc as a stressful, but potentially profitable, opportunity:

MTW has been hurt by the recession, there are some concerns about the synergies between the Crane business and Foodservice business. These businesses are not even remotely related and there are some concerns weather management can run two very different businesses effectively. Also they have acquired a decent amount of debt. Once the economy recovers they should benefit as long as they spend their earnings reducing their long term debt.

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

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Joy Global. 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 October 13, 2011, at 3:28 PM, VolkOseba wrote:

    I go past Manitowoc crane every day... I don't know what to think about management, but they're building some impressive stuff.

  • Report this Comment On October 24, 2011, at 11:33 AM, gypsy46 wrote:

    I just bought 2000 shares. Gene

  • Report this Comment On October 24, 2011, at 11:54 AM, Gator626 wrote:

    $2B in debt, still burning cash, and I get the feeling they're going to have to sell off parts of their business to maintain debt payments. It looks like a pure momentum play, as the fundamentals don't seem to make it worth holding long term. Good luck though.

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DocumentId: 1569008, ~/Articles/ArticleHandler.aspx, 5/26/2012 6:01:45 PM

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