Recs

8

5-Star Stocks Poised to Pop: AZZ

Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electrical products maker AZZ (NYSE: AZZ  ) has earned a coveted five-star ranking.

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

AZZ facts

Headquarters (Founded)

Fort Worth, Texas (1956)

Market Cap

$412.8 million

Industry

Heavy electrical equipment

Trailing-12-Month Revenue

$399.8 million

Management

CEO David Dingus (since 2001)

CFO Dana Perry (since 2004)

Return on Equity (Average, Past 3 Years)

22.7%

Cash/Debt

$72.0 million / $100 million

Competitors

Eaton (NYSE: ETN  )

General Electric (NYSE: GE  )

CAPS Members Bullish on AZZ Also Bullish on

Vale (NYSE: VALE  )

Google (Nasdaq: GOOG  )

CAPS Members Bearish on AZZ Also Bearish on

AMR (NYSE: AMR  )
Apple (Nasdaq: AAPL  )

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

On CAPS, 97% of the 562 members who have rated AZZ believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mcollin and TSIF, both of whom are ranked in the top 10% of our community.

Just last week, mcollin galvanized Fools to take a closer look at the stock:

While galvanizing wire and performing other manufacturing processes may not be the sexiest businesses, AZZ should see significant increases in the amount of work they get as the United States rebuilds and expands its electricity infrastructure in the coming years. I believe this is a pretty safe play on Obama's infrastructure spending.

In a pitch from late last month, TSIF expands on the electric opportunity:

AZZ appears to be well positioned to hold their own in this recession and capitalize with any boost in spending. For now, backlog is down and with most companies, earnings are being crimped. AZZ should be able to hold at these levels. Cash is increasing rapidly while debt is holding at the same $100 Million they've owed for several years. Cash flow is very good, while book is only 2.0. Profit margins are holding at 10% with operating margins at 18% with double digit ROE. With a P/E of 10, (Forward at 11), it appears to me a relative safe investment.

What do you think about AZZ, 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. Google is a Motley Fool Rule Breakers pick, and Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.


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2/10/2012 4:00 PM
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