4-Star Stocks Poised to Pop: Suntech Power

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar module maker Suntech Power (NYSE: STP) has earned a respected four-star ranking. While 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 Suntech's business and see what CAPS investors are saying about the stock right now.

Suntech facts

Headquarters (founded)

Wuxi, China (2001)

Market Cap

$1.06 billion

Industry

Electrical components and equipment

TTM Revenue

$1.91 billion

Management

Founder/CEO Zhengrong Shi

CFO Amy Yi Zhang

Return on Equity (average last three years)

23.3%

Competitors

Kyocera (NYSE: KYO),

Evergreen Solar (Nasdaq: ESLR)

CAPS members bullish on STP also bullish on

General Electric (NYSE: GE),

Google (Nasdaq: GOOG)

CAPS members bearish on STP also bearish on

First Solar (Nasdaq: FSLR),

SunPower (Nasdaq: SPWRA)

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

Over on CAPS, 3,977 of the 4,110 members who have rated Suntech -- or 97% -- believe the stock will outperform the S&P 500. These Foolish bulls include PiMaster and dockofthebay.

Last week, PiMaster had this to say about Suntech:

Oil will go back up substantially over the course of the next few years, and as it does this stock will do very well. The world needs this technology, and as the biggest player in the biggest country (with a good presence in the US also), this stock seems like a must long-term.

In a pitch just three days later, dockofthebay agreed, stressing the stock's really long-term potential:

This industry is being strained right now by a variety of factors, all of which are temporary. The well financed companies with good reputations and the ability to adapt to technological advances in solar will survive the squeeze. Grid parity will be reached and Suntech Power Holdings will be in business on that day. The sun is going to be around longer than this planet's supply of oil and natural gas.

What do you think about Suntech, 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. 

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Suntech Power and Google are both Motley Fool Rule Breakers selections. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 17, 2008, at 2:34 AM, ultimatetrav wrote:

    Anyone who believes buy and hold is dead is ignoring the lessons of history and the factors that will eventually come into play in a depressed global economy.

    Like the policy or not, the fact is there is an unprecented drive by governments to raid tax payers' cash and run large deficits in order to stimulate their economies by rebuilding infrastructure while moving to affordable, environmentally friendly sources of energy. This will inevitably lead to significant gains for certain industry sectors over the next 3-5 years, not least the dominant alternative energy, technology and financial players. Now the only way to reap rewards from these stocks will be to buy while the price is still low (having checked the underkying fundamentals and order books) and hold on for the long haul.

    In future, investors large and small will be far more wary when selecting stocks and do their research. This will help seperate the properly run companies from those built on marketing hype and PR, and hence create a much more sane playing field in which to invest for the long haul.

    Let's not forget, the world has been through a depression in the past and the correctional options available to the public and private sector alike are a little more advanced these days.

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