4-Star Stocks Poised to Pop: AAON

Recs

9

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.

“The most exciting development in my lifetime!” -- 15 years ago, Motley Fool founder David Gardner uncovered a secret that changed how he’d invest forever. It can make you money in 2010 – no matter whether the market is up, down, and dead flat. To learn more, enter your email address now!

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.

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.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 945751, ~/Articles/ArticleHandler.aspx, 1/1/2010 8:14:37 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
The Fool's 2009 Year in Review and 2010 Predictions

Related Tickers

12/31/2009 4:00 PM
JNJ $64.41 Down -0.50 -0.77%
Johnson & Johnson CAPS Rating: *****
HOG $25.20 Down -0.30 -1.18%
Harley-Davidson, I… CAPS Rating: **
IR $35.74 Down -0.39 -1.08%
Ingersoll-Rand Com… CAPS Rating: *****
SBUX $23.06 Down -0.25 -1.07%
Starbucks Corp CAPS Rating: **
AAPL $210.73 Down -0.91 -0.43%
Apple, Inc. CAPS Rating: ***
UTX $69.41 Down -1.08 -1.53%
United Technologie… CAPS Rating: ****
AAON $19.49 Down -0.36 -1.81%
AAON, Inc. CAPS Rating: *****

Community: Investing Wiki

Term Of The Hour

Marginal tax rate: Marginal tax rate is the tax rate paid on the last dollar of income.

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