5-Star Stocks Poised to Pop: Spartan Motors

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spartan Motors (Nasdaq: SPAR), which makes vehicle chassis and bodies, has earned a coveted five-star ranking.

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

Spartan facts

Headquarters (Founded)

Charlotte, Mich. (1975)

Market Cap

$164.1 million

Industry

Auto components

Trailing-12-Month Revenue

$475.8 million

Management

CEO John Sztykiel (since June 2002)

CFO Joseph Nowicki (since June 2009)

Return on Equity (Average, Past 3 Years)

19.7%

Cash / Debt

$36.2 million / $26.7 million

Dividend Yield

2%

Competitors

Oshkosh (NYSE: OSK)

Supreme Industries

CAPS Members Bullish on SPAR Also Bullish on

General Electric (NYSE: GE)

Apple (Nasdaq: AAPL)

CAPS Members Bearish on SPAR Also Bearish on

Ford Motor (NYSE: F)

Allied Irish Banks (NYSE: AIB)

CapitalSource (NYSE: CSE)

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

On CAPS, 95.2% of the 602 members who have rated Spartan believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star PearlandTX and All-Star TSIF, who is ranked in the top 2% of our community.

Just last month, PearlandTX highlighted Spartan's warrior-like spirit:

Good company in a battered sector. They managed to stay profitable throughout the recent economic storm. Solid cash position. Currently priced at book value.

In a pitch from two weeks earlier, TSIF also steered Fools toward the stock:

Spartan Motors, despite its key business, RV chassis being in the tanker, has managed to maintain a profit from its specialty vehicles, (Emergency Vehicles and special class military vehicles). It even continues to pay a small 2% dividend, although if the recession continues, that could be at risk. Spartan is one of the few companies not taking part in the last three month rally. ... [T]rading just below book, minimal debt, 5% profit margins, and good ROE. Any turn in the economy should get the RV chassis's moving and Spartan's current profit levels are sufficient that it can wait.

What do you think about Spartan, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool owns shares of CapitalSource. The Fool's disclosure policy always gets a perfect score.

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