5-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 manufacturer Hillenbrand (NYSE: HI  ) has earned a coveted five-star ranking.

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

Hillenbrand facts

Headquarters (Founded) Batesville, Ind. (2008)
Market Cap $1.2 billion
Industry Specialized consumer services
Trailing-12-Month Revenue $960.9 million
Management CEO Kenneth Camp (since 2008)
CFO Cynthia Lucchese (since 2008)
Return on Equity (Average, Past 3 Years) 25.0%
Cash/Debt $16.0 million / $273.6 million
Dividend Yield 4.1%
Competitors Aurora Casket Company
Badger Meter
Matthews International

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

On CAPS, 99% of the 362 of the members who have rated Hillenbrand believe the stock will outperform the S&P 500 going forward.   

Earlier this month, one of those bulls, diegorgazzi, tapped Hillenbrand as a particularly solid income opportunity:

This stock is so cheap. ... Great boring business, something that would make Peter Lynch proud: construction of caskets, they're never going to run out of clientele, that's for sure. Nice [dividend yield] of about 4%.

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, Hillenbrand may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Hillenbrand. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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Comments from our Foolish Readers

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  • Report this Comment On September 27, 2012, at 9:12 AM, whitet2125 wrote:

    Let's be perfectly clear on HI's ability to show profit and growth in a very questionable market. I can talk with experience on the inside.

    Ken Kamp has one focal point and that is profit at any cost. He and his management team understand that the idea of burial caskets is an old fashion way of thinking as baby boomers continue to trend towards cremation. They got ahead of the game back in the 90's and created one of the most profitable cremation urn organizations in the world, (Options By Batesville) out-sources most of their manufacturing and all of the delivery eliminating the need for personnel, unlike their casket division. Then started to hunt down other businesses that fit their style of manufacturing outside the funeral industry. I watched as they began to ignore quality to focus on cost saving such as shipping products by rail, eliminating company drivers. That seems harsh but it is a great example of a company that understands that hard decisions must be made in the name of the almighty dollar. Investors can be comforted knowing their investments are safe from being squandered away on old fashion thinking like, quality and employee retention.

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