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5-Star Stocks Poised to Pop: CVR Partners

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen fertilizer producer CVR Partners, LP (NYSE: UAN  ) has earned a coveted five-star ranking.

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

CVR Partners facts

Headquarters (founded) Sugar Land, Texas (2007)
Market Cap $1.5 billion
Industry Fertilizers and agricultural chemicals
Trailing-12-Month Revenue $323.8 million
Management CEO Byron Kelley
CFO Frank Pici
Trailing-12-Month Return on Equity 32.4%
Cash/Debt $225.6 million / $127.4 million
Dividend Yield 10.5%
Competitors CF Industries
PCS Nitrogen

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

On CAPS, 98% of the 297 members who have rated CVR Partners believe the stock will outperform the S&P 500 going forward.  

Just yesterday , one of those bulls, BlacknGold, highlighted the recent sale of its parent, CVR Energy, to billionaire Carl Icahn as a solid bargain opportunity:

CVR Partners seems to have fallen just on the simple observation that little information has been provided on how it fits into a plan to sell CVR Energy and maybe a little on the weaker than expected fertilizer prices this summer. I don't see how the business changes. ... Pet coke is to be provided from the adjacent oil refinery through 2027. The plant expansion next year should be good news if fertilizer prices recover. Also, the facility is next to the higher margin agricultural belt. ...

I may be a little biased, but it seems like a market overreaction to me. Either way, there's no reason for me to sell at these prices. I'll hold on and wait to see what happens. If the price slides to the mid teens I'll have to consider adding more shares.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, CVR Partners may not be your top choice.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of CF. 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.

Read/Post Comments (2) | Recommend This Article (3)

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 June 06, 2012, at 11:58 AM, prginww wrote:

    98% of 287 people can be wrong. I like the stock, but I didn't buy it because 281 people "Liked" it.

  • Report this Comment On June 06, 2012, at 7:06 PM, prginww wrote:

    I might be a buyer of more shares at 19 and collect the dividend till it gets back to the mid-high 20's, then sell half my position.

    (long UAN at 21).

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10/27/2016 4:02 PM
UAN $5.04 Up +0.29 +0.00%
CVR Partners CAPS Rating: ****