5-Star Stocks Poised to Pop: Tata Motors

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Based on the aggregated intelligence of more than 110,000 investors participating in the Fool’s free investing community, Motley Fool CAPS, Indian automaker Tata Motors (NYSE: TTM) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Tata Motors facts

   

Headquarters (Founded)

Mumbai, India (1945)

Market Cap

$4.06 billion

Industry

Auto Manufacturers

TTM Revenue

$8.95 billion

Management

CEO Ravi Kant (since 2005)

CFO C. Ramakrishnan (since 2007)

TTM Return on Equity

30.2%

CAPS members bullish on TTM also bullish on

Cemex (NYSE: CX)

Vale (NYSE: RIO)

Johnson & Johnson (NYSE: JNJ)

CAPS members bearish on TTM also bearish on

General Motors (NYSE: GM)

Ford Motors (NYSE: F)

Microsoft (Nasdaq: MSFT)

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

Over on CAPS, 556 of the 577 All-Star members who have rated Tata Motors -- some 96% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include mkeszler and MJKpayday, both of whom are ranked in the top 10% of our community.

In April 2007, mkeszler fearlessly forecasted that Tata "Will become world's largest automaker by number of cars sold some day soon. The growth in India is unbelievable. Roads are being constructed everywhere...."

A more recent pitch from MJKpayday in January of this year shared that bullish belief, noting Tata's tasty prospects outside of India, as well:

An outperform for India's TATA motors is like an outperform for a sure up and coming underdog, not just a pick for one emerging country, but a company for all emerging countries. TATA motors is India's most recognized industrial company with interest in vehicles, engines, marine applications, information technology services and construction. They've experienced decades of growth and are sure to profit through the next few decades as not just India's up and coming middle class arrives, but the middle class of much of Asia arrives.

What do you think about Tata Motors -- or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 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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Tata Motors and Cemex are Motley Fool Global Gains recommendations. Cemex is also a Stock Advisor pick, and the Fool owns shares. Johnson & Johnson is an Income Investor selection. Microsoft is an Inside Value choice. Try any of our Foolish newsletters today, free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. 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 August 08, 2008, at 4:03 PM, chandresh111 wrote:

    Tata Motors,

    Reasons to BUY

    1. As told by Ratan Tata that JLR will make profit of 2500 cr Rs for this year at investor meeting. Please don't forget this words. than think what will happen when JLR result declared. and even please refer past history of companies who have purchesed more than their capacity their result will be better to survive even if not in actual !!

    2. After merger it will be Fortune 500 Company

    3. Auto sector is one of the good sector from which five companies out of top 25 of Fortune 500

    4. Tata Motors have Cheap auto special steel from corus and better technology from JLR

    5. Crude oil rate will nearly in rage of 90 to 100 $ min than people need more small car which can give more milage an cheap car. and new thirsty era of energy it is becoming too cosly, poeple need e-car. e-car will be modified ultra low cost car like Nano. i think no one can challege nano by cost till, but must be accepted by people. because car is social status. India is poor country at where slipper is sold more than chapals and chapals are more sold than shoes!

    6. Already so many times declared by Tata that they will demerge 20 profit making subsidairy out of 30. value unlock by demerge.

    7. Major problem for auto is Cheap Finance. But Tata will get cheap finance from Japan at where auto has good image, for that two plan listing of tata moto at tokyo stock exchange and selling of stake of tata motor finance to japan's comapny.

    8. Tata motor is about to intriduce worlds most efficient desel engine soon. than after series of new model.

    9. As per India's economy Auto sector will in bull run.

    Wriiten from long time paper reading and as per my view. i am day trader in this stock and watching since one year

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