Why Westar Energy Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electric utility Westar Energy (NYSE: WR  ) has earned a respected four-star ranking.

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

Westar facts

Headquarters (founded)

Topeka, Kan. (1924)

Market Cap

$4.1 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$2.3 billion

Management

CEO Mark Ruelle

CFO Anthony Somma

Return on Capital (average, past 3 years)

9.5%

Cash/Debt

$5.6 million / $3.4 billion

Dividend Yield

4.1%

Competitors

Ameren

Great Plains Energy

Xcel Energy

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

On CAPS, 96% of the 4,521 members who have rated Westar believe the stock will outperform the S&P 500 going forward.   

Just yesterday, one of those Fools, hend6, succinctly summed up Westar bull case for our community:

As the market might slow, an energy company is poised to stay strong. Consistent earnings with a nice dividend yield, albeit a high payout ratio. That can be expected from this industry though. Balance sheet leans toward a low current ratio, but a high ratio of long-term assets-to-liabilities is comforting. We'll see how the market fares in the next year and keep holding on or let go at that time.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Westar 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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12/18/2014 4:01 PM
WR $40.53 Up +0.59 +1.48%
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