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5-Star Stocks Poised to Pop: NYSE Euronext

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, stock exchange operator NYSE Euronext (NYSE: NYX  ) has earned a coveted five-star ranking.

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

NYSE Euronext facts

Headquarters

New York, N.Y.

Market Cap

$5.11 billion

Industry

Specialized finance

TTM Revenue

$4.47 billion

Management

CEO Duncan Niederauer (since 2007)
CFO Michael Geltzeiler (since 2008)

Return on Capital (average, last three years)

20.7%

Dividend Yield

6.2%

Competitors

Nasdaq OMX Group (Nasdaq: NDAQ  )
CME Group (Nasdaq: CME  )

CAPS members bullish on NYX also bullish on:

Goldman Sachs (NYSE: GS  )
Google (Nasdaq: GOOG  )

CAPS members bearish on NYX also bearish on:

Citigroup (NYSE: C  )
Ford Motor (NYSE: F  )

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

Over on CAPS, 2,405 of the 2,489 members who have rated NYSE Euronext -- or 96.6% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star stallis and JohnMcCloy.

Two weeks ago, stallis wrote that the stock was too cheap to pass up:

Great moat, great business model, increased volatility of late probably means more transactions, good times in the future means more investor participation (equals more transactions). I shied away from the exchanges in the past because I felt it would take too long for them to grow into their multiples but it's difficult not to like NYX at the current price ($21 and change).

In a pitch from late last month, JohnMcCloy follows that contrarian line of reasoning:

Insane pricing. Victim of a frightened Market.
*Huge Dividend
*Your Getting [London Stock Exchange] for free essentially
*Boerse is all but telling you they are going to Merge. They already tried only a month ago
*Obama is going to Spark a huge rally
*Just retested 30.00 Going there again
*Strong Cash flow and little debt
*NOT A FINANCIAL. Even though it tends to trade with financials.

What do you think about NYSE Euronext, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. 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. NYSE Euronext and Google are Motley Fool Rule Breakers picks. Nasdaq OMX is an Inside Value pick. The Motley Fool has sold put options on Nasdaq OMX Group. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:02 PM
NYX $24.47 Down -0.03 -0.12%
NYSE Euronext CAPS Rating: *****
GS $96.70 Down -0.16 -0.17%
Goldman Sachs Grou… CAPS Rating: ***
NDAQ $22.06 Up +0.26 +1.19%
Nasdaq Stock Marke… CAPS Rating: ****
GOOG $591.53 Down -12.13 -2.01%
Google CAPS Rating: ****
C $26.47 Down -0.19 -0.71%
Citigroup Inc CAPS Rating: ***
F $10.60 Up +0.01 +0.09%
Ford CAPS Rating: ****

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