5-Star Stocks Poised to Pop: Mueller Water Products

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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, water infrastructure specialist Mueller Water Products (NYSE: MWA) has earned a coveted five-star ranking.

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

Mueller facts

Headquarters

Atlanta

Market Cap

$578 million

Industry

Industrial machinery

Trailing-12-Month Revenue

$1.43 billion

Management

CEO Gregory Hyland (since 2006)
CFO Evan Hart (since 2008)

Return on Capital (Average, Past 3 Years)

4.0%

Cash / Debt

$61.5 million / $740.2 million

Dividend Yield

1.4%

Competitors

Tyco International (NYSE: TYC)
ERICO International

CAPS Members Bullish on MWA Also Bullish on

General Electric (NYSE: GE)
Johnson & Johnson (NYSE: JNJ)
Apple (Nasdaq: AAPL)

CAPS Members Bearish on MWA Also Bearish on

Gap (NYSE: GPS)
Sears Holdings (Nasdaq: SHLD)

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

On CAPS, 97.1% of the 1,403 members who have rated Mueller believe the stock will outperform the S&P 500 going forward. These bulls include MikeBobulinski and All-Star Teacherman1, who is ranked in the top 10% of our community.

Just last month, MikeBobulinski pushed Fools to ride the powerful wave into water: "Everyone likes water. Infrastructure plays are significant and our economy, when it gets back on a better footing, will see increased activity in infrastructure to both improve existing and to create new paths for critical items like water."

In an earlier pitch, from July, Teacherman1 also said the spigots are slowly starting to open:

They are a good company which got "super whammed" by the housing market. Most of their sales are tied to new home construction. ... For patient investors, they have the potential to pay off big. While they were a spin off a couple of years ago, they are not new at this. They have been around for about 100 years, and will still be around when the economy turns, and new home construction gets back on track.

What do you think about Mueller, 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. Mueller Water is a Motley Fool Hidden Gems choice, Johnson & Johnson is an  Income Investor pick, Apple is a Stock Advisor selection, and Sears Holdings is a choice of Inside Value. 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.

  • Report this Comment On November 08, 2009, at 8:28 AM, paultaut wrote:

    MWA does not have to wait for Housing to improve.

    Our Water Infrastructure is in sad shape. Replacements will ignite this company next year. Obama's Tariff on steel pipes guarantees more orders for MWA.

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