Recs

6

5-Star Stocks Poised to Pop: Kaydon

Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industrial products maker Kaydon (NYSE: KDN  ) has earned a coveted five-star ranking.

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

Kaydon facts

Headquarters (founded)

Ann Arbor, Mich. (1941)

Market Cap

$988.1 million

Industry

Industrial machinery

Trailing-12-Month Revenue

$522.4 million

Management

CEO James O'Leary (since March 2007)
CFO Peter DeChants (since January 2009)

Return on Equity (average, last three years)

15.4%

Dividend Yield

2.3%

Competitors

Timken (NYSE: TKR  )

CAPS members bullish on KDN also bullish on:

General Electric (NYSE: GE  )
Vale (NYSE: RIO  )
Transocean (NYSE: RIG  )

CAPS members bearish on KDN also bearish on:

D.R. Horton (NYSE: DHI  )
Kimco Realty (NYSE: KIM  )

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

Over on CAPS, every single one of the 81 All-Star members who have rated Kaydon believes the stock will outperform the S&P 500 going forward. These bulls include Har1en and Trimalerus, both of whom are ranked in the top 2% of our community.

Last week, Har1en tapped the stock as an interesting infrastructure play:

Wind and industrial products. Kaydon makes things that help other folks make things. We need to make things, and the government seems interested in funding it (and new energy projects). Low PE, low debt, high caps.

In a pitch from two weeks earlier, Trimalerus elaborates on the winds beneath Kaydon's wings:

Wind Power is set to grow rapidly worldwide in the next few years, so I'm snapping up stocks that are still close to their 52 week lows before the market realizes the long term value in this sector. I've already picked a few discount Wind ETFs, now it's time to add a few worthy specific stocks in this market for long term growth. The high outperform ratio is also a plus. It would have been better to pick this last month, but it should still perform well over the next 3-5 years.

What do you think about Kaydon -- or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/14/2012 4:00 PM
KDN $35.11 Down -0.13 -0.37%
Kaydon Corp CAPS Rating: *****
RIG $48.44 Down -0.87 -1.76%
Transocean, Inc. CAPS Rating: *****
RIO $58.62 Down -2.03 -3.35%
Rio Tinto plc (ADR… CAPS Rating: ****
TKR $53.33 Down +0.00 +0.00%
The Timken Company CAPS Rating: *****
DHI $14.56 Down -0.17 -1.15%
D.R. Horton, Inc. CAPS Rating: *
GE $18.94 Down -0.13 -0.68%
General Electric C… CAPS Rating: ****
KIM $18.54 Down -0.29 -1.54%
Kimco Realty Corp CAPS Rating: *

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