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4-Star Stocks Poised to Pop: Zipcar

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, car sharing network operator Zipcar (Nasdaq: ZIP  ) has earned a respected four-star ranking.

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

Zipcar facts

Headquarters (founded) Cambridge, Mass. (2000)
Market Cap $280.7 million
Industry Consumer services
Trailing-12-Month Revenue $260.9 million
Management Chairman/CEO Scott Griffith
President/COO Mark Norman
Return on Equity (average, past 3 years) 0.4%
Cash/Debt $62.7 million / $120.5 million
Competitors Avis Budget

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 959 members who have rated Zipcar believe the stock will outperform the S&P 500 going forward.   

A couple of months ago, one of those Fools, TMFJLo, touched on several of the stock's positives: "Zipcar is changing the way that people consider transportation, capitalizing on the average 23 hours a day that car owners don't drive their car. They've got the brand, top-tier management, close relationships with public and private sector partners, and they're pouring money into R&D that'll work wonders down the road."

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Zipcar may not be your top choice.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Hertz Global Holdings and Zipcar. Motley Fool newsletter services have recommended buying shares of Zipcar. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (2) | Recommend This Article (2)

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 August 08, 2012, at 9:32 AM, 2roll2 wrote:

    I think it is best time to buy shares of ZIP too considering the anual increase in the number of people who use rent cars.

  • Report this Comment On August 08, 2012, at 1:30 PM, mrbkush wrote:

    Forgot Car2Go, Uhaul, the new peer-to-peer true sharing programs, BMW, Toyota et al.

    Zipcar is in deep trouble and needs to partner with someone or sell their assets.

    What this analysis also misses is that during the hour or two people use their car they really appreciate having it. Most people only spend half their day at their home and two thirds of it asleep, perhaps home ownership isn't needed.

    Car rental has been a business for decades and will be around for a very long time. If hourly rentals become more popular, that doesn't translate into profits for ZIP.

    They don't have the capital to expand and I doubt a secondary will succeed at this time

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Zipcar CAPS Rating: ****