Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mining equipment maker Bucyrus International (Nasdaq: BUCY) 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 woefully lag the market average.
With that in mind, let's take a closer look at Bucyrus' business, and see what CAPS investors are saying about the stock right now.
Bucyrus facts
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Headquarters (founded)
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South Milwaukee, Wis. (1880)
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Market Cap
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$1.39 billion
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Industry
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Construction machinery
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TTM Revenue
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$2.33 billion
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Management
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CEO Timothy Sullivan (since 2004)
CFO Craig Mackus (since 2004)
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Return on Equity (average, last three years)
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25.6%
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Competitors
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Joy Global (Nasdaq: JOYG)
CNH Global (NYSE: CNH)
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CAPS members bullish on BUCY also bullish on:
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Vale (NYSE: RIO)
Transocean (NYSE: RIG)
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CAPS members bearish on BUCY also bearish on:
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Las Vegas Sands (NYSE: LVS)
Yahoo! (Nasdaq: YHOO)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 905 of the 927 members who have rated Bucyrus -- or 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include DrDinoTX and CAPS All-Star BSHumphreyII.
Last month, DrDinoTX brought attention to the stock's attractive top line: "Solid revenue growth over the last three years. A good play on commodity prices but less volatile due to less elasticity of demand."
In a pitch from five days ago, BSHumphreyII agrees, writing that Bucyrus' fast-growing bottom line isn't too shabby, either:
Considering its explosive earnings growth, Bucyrus is absurdly cheap right now at less than 6 times earnings. Seriously, it's trading at less than 1.5 times its book value. I know commodities have crashed, but that doesn't mean every mine in the world is going to close up!
Contracts with multi-national mining corporations will keep Bucyrus in business until commodities recover and its customers begin to expand operations again.
What do you think about Bucyrus, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 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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