Recs

9

4-Star Stocks Poised to Pop: AAON

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, air conditioner and heater maker AAON (Nasdaq: AAON  ) has earned a respected four-star ranking.

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

AAON facts

Headquarters (founded)

Tulsa, Okla. (1987)

Market Cap

$349.4 million

Industry

Building Products

TTM Revenue

$278.2 million

Management

Founder/CEO Norman Asbjornson
CFO Kathy Sheffield

Return on Equity (average, last three years)

24.5%

Dividend Yield

1.8%

Competitors

Ingersoll-Rand (NYSE: IR  )
United Technologies (NYSE: UTX  )

CAPS Members Bullish on AAON Also Bullish on:

Johnson & Johnson (NYSE: JNJ  )
Apple (Nasdaq: AAPL  )

CAPS Members Bearish on AAON Also Bearish on:

Starbucks (Nasdaq: SBUX  )
Harley-Davidson (NYSE: HOG  )

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

Over on CAPS, 256 of the 269 members who have rated AAON -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Star BoiseKen, who is ranked in the top 15% of our community, and tenmiles, the sixth-ranked player in all of CAPS-dom.

Just last month, BoiseKen tapped AAON as a hot opportunity at a cool price:

What is not to like -- little dividend, small cap, no [long-term debt], high growth (over 30% for the last 3 years), and silly low p/e.... Return on equity is 28.1%. I need to do more reading, but this is now on a serious watch list!

In a pitch from two days later, tenmiles also helped Fools feel more comfortable with the stock:

Like its core business of heating and air conditioning … Above average small cap -- significant [free cash flow], high ROE, [long-term debt] free, decent dividend. Over half of their business now derived from replacement sector, so fits as ongoing play on government incentives to efforts to improve energy efficiency. Likely to be a significant money maker for those with 3-5 year investment horizon.

What do you think about AAON, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 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. Starbucks and Apple are Motley Fool Stock Advisor picks. Starbucks is also an Inside Value choice, and the Fool owns shares of it. Johnson & Johnson is an Income Investor recommendation. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/14/2012 4:00 PM
AAON $18.72 Down -0.58 -3.01%
AAON, Inc. CAPS Rating: *****
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