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5-Star Stocks Poised to Pop: Ituran Location & Control

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, stolen vehicle recovery specialist Ituran Location & Control (Nasdaq: ITRN  ) has earned a coveted five-star ranking.

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

Ituran facts

Headquarters (Founded) Azour, Israel (1994)
Market Cap $311.4 million
Industry Communications equipment
Trailing-12-Month Revenue $146.7 million
Management

Co-CEO Eyal Sheratzky (since 2003)

Co-CEO Nir Sheratzky (since 2003)

Return on Equity (Average, Past 3 Years) 14.7%
Cash/Debt $47.8 million / $6.2 million
Dividend Yield 6.5%
Competitors

LoJack (Nasdaq: LOJN  )

Pointer Telocation (Nasdaq: PNTR  )

Trimble Navigation (Nasdaq: TRMB  )

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

On CAPS, 99% of the 290 members who have rated Ituran believe the stock will outperform the S&P 500 going forward. These bulls include guyusj and dumberthanafool.

Earlier this year, guyusj tapped Ituran as an enticing income opportunity: "[T]his is a very promising company with solid growth prospects. I also like their attitude regarding giving money back to shareholders."

Ituran even boasts a robust three-year average operating margin of 20.4%. That's much higher than the 10.7% figures from rivals Pointer and Trimble, let alone LoJack's average negative margin of -1.2%.

CAPS member dumberthanafool elaborates on the Ituran bull case:

Does a lot of business in Argentina and Brazil, in addition to Israel and the U.S. Big dividend (though not a stable, American-style dividend, it fluctuates European-style). Excellent balance sheet. ROA and ROE have been recovering in the last two years. ... While I continue to add to my "safe" large-cap quality stock holdings, my strategy this year, which I have already been implementing, is to make "riskier" bets (for me) in ETFs of interest ... and to look for high quality SMALL-cap companies. By high quality, I mean companies with great balance sheets, decent price to earnings and/or price/FCF ratios, stable or growing and decent ROE, rational business plans, etc. I put ITRN in this category.

What do you think about Ituran, 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. Motley Fool newsletter services have recommended Ituran, along with a short position in Trimble. 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.


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 May 16, 2011, at 1:20 PM, ilays wrote:

    I would look at POINTER, much smaller but growing nicely with great vision and lots of room to grow, especially for the stock, Pointer is a bit riskier but can offer much higher returns fr he medium run

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DocumentId: 1494988, ~/Articles/ArticleHandler.aspx, 5/27/2012 6:24:24 PM

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Related Tickers

5/25/2012 3:59 PM
ITRN $12.67 Up +0.16 +1.28%
Ituran CAPS Rating: *****
TRMB $47.66 Down -0.08 -0.17%
Trimble Navigation… CAPS Rating: ***
PNTR $2.74 Down +0.00 +0.00%
Pointer Telocation… CAPS Rating: No stars
LOJN $3.07 Down -0.15 -4.66%
LoJack Corp CAPS Rating: ****

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