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4-Star Stocks Poised to Pop: Buenaventura

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Peruvian precious metals miner Compania de Minas Buenaventura (NYSE: BVN  ) has earned a respected four-star ranking.

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

Buenaventura facts

Headquarters (Founded)

Lima, Peru (1953)

Market Cap

$10.16 billion

Industry

Gold

Trailing-12-Month Revenue

$1.28 billion

Management

Chairman/CEO Roque Benavides

CFO Carlos Pinillos

Return on Equity (Average, Past 3 Years)

28.8%

Dividend Yield

1.2%

Competitors

Barrick Gold (NYSE: ABX  )

Newmont Mining (NYSE: NEM  )

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

On CAPS, 96% of the 765 members who have rated Buenaventura believe the stock will outperform the S&P 500 going forward. These bulls include irvduffy and tbonci.

Late last month, irvduffy touched on the Far Eastern tailwind working in Buenaventura's favor: "China needs minerals -- Peru has a bunch of minerals and wants to grow. BVN is going to grow!"

Over the next five years, in fact, Buenaventura is expected to grow its bottom line at a solid rate of 13.1% annually. That's faster than other precious metals plays like Barrick (1.4%) and Yamana Gold (NYSE: AUY  ) (7.7%), let alone Newmont's expected annual drop of 5.7%.

CAPS member tbonci elaborates on the Buenaventura bull case:

Metrics: Great RoE and some of the best margins in the industry. Recent jitters about politics have left this stock undervalued. The industry momentum is positive, and this stock will grow through a surge of confidence from US investors once the political situation in Peru stabilizes, further giving it better momentum.

What do you think Buenaventura, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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DocumentId: 1484975, ~/Articles/ArticleHandler.aspx, 5/27/2012 6:23:24 PM

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Related Tickers

5/25/2012 4:00 PM
BVN $38.71 Up +0.22 +0.57%
Companhia de Minas… CAPS Rating: ***
NEM $48.82 Up +0.19 +0.39%
Newmont Mining Cor… CAPS Rating: ***
AUY $14.88 Up +0.42 +2.90%
Yamana Gold, Inc.… CAPS Rating: ****
ABX $40.00 Up +0.49 +1.24%
Barrick Gold Corp… CAPS Rating: ***

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