4-Star Stocks Poised to Pop: MEMC Electronic Materials

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar-wafer maker MEMC Electronic Materials (NYSE: WFR) has earned a respected four-star ranking. Although five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

MEMC Electronic facts 

Headquarters (Founded)	St. Peters, Mo. (1984)
Market Cap	$9.08 billion
Industry	Semiconductor equipment
Trailing-12-Month Revenue	$2.04 billion
Management	CEO Nabeel Gareeb (Since 2002) CFO Kenneth Hannah (Since 2006)
Return on Capital (Average, Past Three Years)	31.1%
Major Competitors	SunPower (Nasdaq: SPWR) Evergreen Solar (Nasdaq: ESLR)
CAPS Members Bullish on WFR Also Bullish on:	Suntech Power (NYSE: STP) Vale (NYSE: RIO)
CAPS Members Bearish on WFR Also Bearish on:	First Solar (Nasdaq: FSLR) DryShips (Nasdaq: DRYS)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, fully 342 of the 366 All-Star members who have rated MEMC -- some 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include marc64 and angus118. In May, marc64 wrote:

[MEMC is a] real company, turning great profits, growing fast and sitting on a bunch of cash. The current [price-to-earnings ratio] does not reflect its growth. ... WFR looks like it's needing governments' help less and less. What's not to like?

A pitch from angus118 a day later agreed with that bullish sentiment, highlighting the stock as a powerful "poly play":

The rise of oil prices in recent years has led to increased demand for solar energy, which in turn has created a run-up in silicon prices that makes oil's climb look modest. In 2000 a kilogram of "polysilicon" could have been yours for $9. By the time of my first column on MEMC nearly four years ago, poly was up to about $30 a kilogram. By last November's column it had soared to $200. Now it's more than twice as expensive. That has been a boon for MEMC, which unlike many of its competitors makes most of its poly.

What do you think about MEMC Electronic, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!