5-Star Stocks Poised to Pop: Huaneng Power

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese electricity giant Huaneng Power International (NYSE: HNP  ) has earned a coveted five-star rating. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Huaneng Power facts

Headquarters (Founded)

Beijing, China (1994)

Market Cap

$8.07 billion

Industry

Foreign utilities

TTM Revenue

$7.58 billion

Management

President Jinhua Chen

Chairman Li Xiaopeng

Return on Equity (average, past three years)

13.2%

Dividend Yield

6.2%

CAPS members bullish on HNP also bullish on

Aluminum Corp. of China (NYSE: ACH  ) ,

Apple (Nasdaq: AAPL  ) ,

Suntech Power Holdings (NYSE: STP  )

CAPS members bearish on HNP also bearish on

Baidu.com (Nasdaq: BIDU  ) ,

Washington Mutual (NYSE: WM  ) ,

Citigroup (NYSE: C  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 336 of 343 of the All-Star members who have rated Huaneng Power -- about 98% -- believe the stock will outperform the S&P 500. These All-Star bulls include EMG114 and Terok1313, who are ranked in the top 5% of our community.

In May 2008, EMG114 wrote that Huaneng is "China's largest power producer by capacity. Recently, it agreed to buy Tuas Power Ltd. for about $3 billion to expand into Singapore, which could also promise to be a big market."

In a pitch just a few days earlier, Terok1313 shared that bullish attitude, highlighting Huaneng as a Chinese power play:

There's no question that China is developing quickly or that the development will continue for many years to come, and many stocks will bubble up and burst along the way. Is Baidu really the next Google? I don't know. Will Ctrip.com teach a vast new middle-class how to vacation? Ya got me. ... But one thing I will guarantee... the world will still need ways of generating and distributing electricity in five years, and China in particular is going to need a lot more of it than it has now.

What do you think about Huaneng Power, or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started..

Huaneng Power is a Motley Fool Income Investor selection. Suntech, Baidu, and Google have been singled out by Rule Breakers. Apple is a Stock Advisor choice, and Ctrip is a Motley Fool Hidden Gems pick. Try any of our Foolish newsletters today, free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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