Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, enriched uranium provider USEC (NYSE: USU) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at USEC's business, and see what CAPS investors are saying about the stock right now.
USEC facts
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Headquarters (Founded)
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Bethesda, Maryland (1993)
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Market Cap
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$425 million
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Industry
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Industrial Metals & Minerals
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TTM Revenue
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$1.84 billion
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Management
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CEO John Welch (since 2005)
CFO John Barpoulis (since 2006)
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Return on Equity (average last three years)
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8.0%
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Competitors
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Areva
Urenco
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CAPS members bullish on USU also bullish on
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General Electric (NYSE: GE),
Vale (NYSE: RIO),
Chesapeake Energy (NYSE: CHK)
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CAPS members bearish on USU also bearish on
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Wachovia (NYSE: WB)
Ford Motor (NYSE: F)
Citigroup (NYSE: C)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 192 of the 205 All-Star members who have rated USEC -- some 94% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include shop1 and mustbebusby, both of whom are ranked in the top 5% of our community.
In April, shop1 noted that USEC "has its own niche market. It is the only company that has a uranium enrichment facility in the US. ... It has positive net profits, positive return on equity, investments & assets, and it is trading well below book value."
A more recent pitch from mustbebusby late last month agrees, elaborating on the stock's many long-term tailwinds. Here's an excerpt:
The stock is presently low as they await DOE (Department of Energy) capital to jump start their new production facilities, and the DOE has already invested in [USEC]'s research and development for many years prior to this. They are a shoe in to receive this DOE aid ...
No new nuclear power plants have been built in the United States over the past 20 years. Nearly thirty have been slated for construction (DOE contributing minimum $30bln) as a result of recent alternative energy fervor. ...
... nuclear will become the knight in shining armor of alternative energy.
What do you think about USEC, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 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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