5-Star Stocks Poised to Pop: Horsehead Holding

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, zinc producer Horsehead Holding (Nasdaq: ZINC) 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 woefully lag the market average.

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

Horsehead facts

Headquarters

Pittsburgh

Market Cap

$139 million

Industry

Industrial Metals and Minerals

Trailing-12-Month Revenue

$473.32 million

Management

CEO James Hensler III (since 2004)

CFO Robert Scherich (since 2004)

Trailing-12-Month Return on Equity

20.1%

Competitors

Teck Cominco (NYSE: TCK),

Lundin Mining (NYSE: LMC)

CAPS members bullish on ZINC also bullish on:

Dawson Geophysical (Nasdaq: DWSN),

General Electric (NYSE: GE)

CAPS members bearish on ZINC also bearish on:

Alcoa (NYSE: AA),

Corning (NYSE: GLW)

Sources: Capital IQ, a division of Standard & Poor's, Yahoo! Finance and Motley Fool CAPS.

Over on CAPS, 97% of the 128 All-Star members who have rated Horsehead believe the stock will outperform the S&P 500 going forward. These bulls include kaskoosek and devilinside, both of whom are ranked in the top 20% of our community.

Late last month, kaskoosek predicted that Horsehead "is going to explode soon. Low debt + zinc demand is not going to be hampered = Watch out people."

In an earlier pitch from last month, devilinside agrees, highlighting Horsehead as an odds-on favorite to win:

Plenty of cash on hand. Solid management. Gets paid to take what others don't want to produce their products. How can you go wrong?

5 Zinc mining operations shutting down = rapid reduction of current surplus on the market. Look for a price jump in the spot market by 1qtr 09. This one could be a 6 bagger going forward.

What do you think about Horsehead, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Horsehead Holding and Dawson Geophysical are Motley Fool Hidden Gems picks. The Fool owns shares of Dawson Geophysical. The Fool's disclosure policy always gets a perfect score.

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HORSEHEAD HOLDING CORP.

CAPS Rating 5/5 Stars

$7.31

-0.22 (-2.92%)

Outperform695

Underperform12

Rate This Stock