Donaldson: 4-Star Stocks Poised to Pop

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, filtration systems and replacement parts specialist Donaldson Company (NYSE: DCI  ) has earned a respected four-star ranking.

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

Donaldson facts

Headquarters (Founded)

Minneapolis (1915)

Market Cap

$4.8 billion

Industry

Industrial machinery

Trailing-12-Month Revenue

$2.5 billion

Management

Chairman/CEO William Cook
CFO James Shaw

Return on Equity (Average, Past 3 Years)

26.2%

Cash/Debt

$318.2 million / $301.0 million

Dividend Yield

1.1%

Competitors

Cummins (NYSE: CMI  )
MFRI
(Nasdaq: MFRI  )
Pall
(NYSE: PLL  )

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

On CAPS, 91% of the 207 members who have rated Donaldson believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, valuemoneygreen, tapped Donaldson as a solid long-term opportunity:

Not a household name everyone has heard of. Take a look at the numbers though. Impressive if I do say so myself. ROI, ROE. Margins steadly getting better. Not cheap by any means. A better price to get in at would be $28 or lower if it gets back down there. Adding this because over a 5 + year period I think this equity will outperform the market. ... [S]hare count has been steadily going down.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Donaldson may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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