4-Star Stocks Poised to Pop: Suntech Power

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Based on the aggregated intelligence of 140,000-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.

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

$2.34 billion

Industry

Electrical components and equipment

Trailing-12-Month Revenue

$1.65 billion

Management

Founder/CEO Zhengrong Shi
CFO Amy Zhang

Trailing-12-Month Return on Equity

(0.9%)

Cash/Debt

$760 million / $1.6 billion

Competitors

First Solar (Nasdaq: FSLR)
SunPower (Nasdaq: SPWRA)

CAPS Members Bullish on STP Also Bullish on

Vale (NYSE: VALE)
General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)

CAPS Members Bearish on STP Also Bearish on

Trina Solar (NYSE: TSL)

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

On CAPS, 96.6% of the 4,418 members who have rated Suntech believe the stock will outperform the S&P 500 going forward. These bulls include davbeirney and CAPS All-Star jamespeer, who is ranked in the top 5% of our community.

Less than two months ago, davbeirney kindly reminded Fools that Suntech "is a solar leader in China, and is poised to take a large portion of the Chinese market, along with some of the European market." Our CAPS member concludes: "Solar power is going to be big eventually, and [Suntech] already has a foothold in China, which will need more power to feed its growing energy needs."

In a pitch from one month earlier, jamespeer also sees bright days ahead:

[C]hinese growth combined with german efficiency. Over the last year, they have secured highly valuable contracts in the US and the middle east. Their increase in operational efficiency is extremely impressive and it is obviously an extremely well run company. ... Pluto technology has already shown its great potential and will also give them a competitive advantage in the market. Basically, solar energy is a big focus for the future, and I believe Suntech will be the world leaders for years and years to come.

What do you think about Suntech, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Suntech and First Solar are Motley Fool Rule Breakers picks. Apple is a selection of Stock Advisor. 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 November 11, 2009, at 11:23 AM, FoolsSpecialK22 wrote:

    Suntech is a great company just like this article claims...its grown $3.00 per share since I bought it! :D I expect this company will be one listed among the greats.

  • Report this Comment On November 11, 2009, at 9:40 PM, dividendgrowth wrote:

    All solar stocks are poised to plunge.

    I still vividly remember your pathetic hype of WFR in summer 2008.

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Suntech Power Hold… CAPS Rating: ****
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