5-Star Stocks Poised to Pop: Hurco

Recs

9

Be A Motley Fool Millionaire!

David Gardner's top pick took an epic run of 1,334%! See what he’s recommending that you buy NEXT.

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, computerized machine tool maker Hurco (Nasdaq: HURC) 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 Hurco's business and see what CAPS investors are saying about the stock right now.

Hurco facts

Headquarters (Founded)

Indianapolis, Indiana (1968)

Market Cap

$209.60 million

Industry

Industrial machinery

TTM Revenue

$226.65 million

Management

CEO Michael Doar (since 2001)

COO James Fabris (since 2001)

Return on Equity (average last three years)

25.8%

Major Competitors

Hardinge (Nasdaq: HDNG)

Flow International (Nasdaq: FLOW)

CAPS members bullish on HURC also bullish on

Apple (Nasdaq: AAPL)

First Marblehead (NYSE: FMD)

CAPS members bearish on HURC also bearish on

Citigroup (NYSE: C)

General Motors (NYSE: GM)

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

Over on CAPS, 573 of 577 of the All-Star members who have rated Hurco -- or 99% -- believe the stock will outperform the S&P 500 going forward. These bulls include Cheekybloke and MJKpayday, both of whom are ranked in the top 25% of our community.

In January 2008, Cheekybloke wrote that Hurco is a "Beautiful company to own: no debt, strong cash flow, good looking financials, well managed, balance between domestic and global sales."

MJKpayday shares that bullish sentiment in a more recent pitch, elaborating on the stock's international appeal:

Hurco is a well run company that makes machines that make tools that they sell to other companies so they can make more tools. Sounds confusing? What's not confusing is the opportunity for growth and their cheap share price. Asia still remains an untapped area for Hurco, while Europe remains strong, and in the US, success will be hitting last years numbers. With a [P/B] of 1.85 and a tangible price to book value of only 8 there's room for multiple expansion at any glimmer hope for improved business.

What do you think about Hurco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.

“The Next Great Investment”… That’s how a top global investor describes India’s potential. On Nov. 28, The Motley Fool’s Tim Hanson returns to India to prove it. Follow along in real time and get his TOP pick first (Hanson returned from China in July with a stock that’s up 169%!). Enter email below.

Hurco is a Motley Fool Hidden Gems recommendation. Hardinge is a Hidden Gems Pay Dirt selection. Apple is a Stock Advisor recommendation and First Marblehead is an Inside Value pick. Try any of our Foolish newsletter services free for 30 days.

Fool 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 September 03, 2008, at 4:30 PM, jwarne01 wrote:

    Brian:

    You're spot-on with regard to HURC. We've been in this equity since early '05 and know this market well. The Company's fundamentals are outstanding and the Co.'s largest product-line release begins next Mon. 8th @ IMTS show. Though we've rode the equity from $11 to $32/share ... the Co.'s fundamental performance since '05 has outstripped the Price movement. We clearly see a fair value in the mid-$50s. The high-end machine tool market is not slowing commensurately with the German & E. Europe Mkts. We see EPS of $4.30-$4.50 in '09 with a conserv. Mult. of 13 puts HURC @ mid/high 50s. Thanks for the article

Add your comment.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 719714, ~/Articles/ArticleHandler.aspx, 11/24/2009 5:56:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
How Can We Solve "Too Big To Fail"?

Related Tickers

11/24/2009 4:04 PM
FMD $2.30 Down -0.02 -0.86%
The First Marblehe… CAPS Rating: ****
GM $0.75 Down +0.00 +0.00%
General Motors Cor… CAPS Rating: *
HDNG $5.10 Down -0.05 -0.97%
Hardinge, Inc. CAPS Rating: *****
AAPL $204.44 Down -1.44 -0.70%
Apple, Inc. CAPS Rating: ***
FLOW $2.54 Up +0.01 +0.40%
Flow International… CAPS Rating: ****
C $4.21 Down -0.07 -1.64%
Citigroup, Inc. CAPS Rating: ***
HURC $15.13 Down -0.25 -1.63%
Hurco Companies, I… CAPS Rating: *****

Community: Investing Wiki

Term Of The Hour

Buy and hold: Buy and hold is an investing philosophy that believes in buying excellent companies and holding those investments for the long term.

Want to learn more or edit this definition?
Click here to read more!