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5-Star Stocks Poised to Pop: Chicago Bridge & Iron

Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, construction and engineering specialist Chicago Bridge & Iron (NYSE: CBI  ) has earned a coveted five-star ranking.

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

CB&I facts

Headquarters (Founded)

The Hague, Netherlands (1889)

Market Cap

$1.91 billion

Industry

Construction and engineering

Trailing-12-Month Revenue

$5.03 billion

Management

CEO Philip Asherman (since 2006)
CFO Ronald Ballschmiede (since 2006)

Return on Capital (Average, Past 3 Years)

13.06%

Cash/Debt

$212 million / $169.7 million

Other Highly Rated Construction and Engineering Picks

Fluor (NYSE: FLR  )
ABB (NYSE: ABB  )
Foster Wheeler (Nasdaq: FWLT  )

CAPS Members Bullish on CBI Also Bullish on

Chesapeake Energy (NYSE: CHK  )

CAPS Members Bearish on CBI Also Bearish on

First Solar (Nasdaq: FSLR  )
Allied Irish Banks (NYSE: AIB  )

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

On CAPS, 98% of the 1,341 members who have rated CB&I believe the stock will outperform the S&P 500 going forward. These bulls include Mliaom and All-Star wuff3t, who is ranked in the top 10% of our community.

Three months ago, Mliaom tapped CB&I as a particularly timely turnaround play: "With economy rebounding and expecting to get better in 2010, construction business will rebound with it. [CB&I] will be right there."

In a pitch from this past Monday, wuff3t constructs a more detailed look at the stock:

Earnings and compound share price growth prior to the financial implosion was extremely impressive, and while we may not ever return to those heady days, infrastructure spending will roar back once confidence does. … [CB&I] have been picking up contracts recently, and their geographical diversity means that they will not simply be tied to the (possibly slower to recover) US and other developed markets. Good companies will not remain beaten down for long, and I think [CB&I] is well positioned to make strong gains and outpace the markets as the global economy expands again.

What do you think about CB&I, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. ABB and Chicago Bridge & Iron are Motley Fool Global Gains pick, First Solar is a Rule Breakers recommendation, and Chesapeake Energy is a choice of Inside Value. The Fool owns shares of Chesapeake. 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 December 16, 2009, at 10:28 AM, catoismymotor wrote:

    CBI looks okay. The numbers are solid and it appears to be fairly priced. Although I prefer smalm and mid cap stocks I believe there is a larger more attractive opportunity to our south.

    If I were looking at a company in the same industry I would prefer to go with SID. SID is buying into domestic power plants and Australian coal producers in addition to its own iron mines and metal production. With Brazil about to kick it into high gear for the 2016 games SID is perfectly postioned to provide almost anything needed from powerlines to rebar to I beams. Plus they have a better dividend and ten times the profit margin.

    The one reservation I do have is debt load of 1.2. I normally don't buy into a company with a debt of .75 or higher. I believe the debt can be paid down in short order with the money generated. From my limited knowledge of the management at SID I believe they would make this a priority.

    That's just my ten cents. Thanks for the use of your soap box.

  • Report this Comment On December 16, 2009, at 10:30 AM, catoismymotor wrote:

    I meant for "..with the money generated." to read, " ...with the money generated from the olympic build up,"

  • Report this Comment On December 16, 2009, at 10:44 AM, catoismymotor wrote:

    And I said CBI was in the same industry as SID. I meant *similar*. I meant to show that one produces steel items and the other puts them into use. Like of like the relationship between Magna and Ford. You know, they are kinda hand in hand.

    I'll shut up now so I find something with caffeine. Don't hate me because I'm drowsy.

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Related Tickers

5/25/2012 4:04 PM
CBI $37.12 Down -0.53 -1.41%
Chicago Bridge & I… CAPS Rating: *****
FLR $49.70 Down -0.35 -0.70%
Fluor Corporation CAPS Rating: *****
FSLR $14.33 Up +0.11 +0.77%
First Solar CAPS Rating: **
FWLT $18.82 Down -0.16 -0.84%
Foster Wheeler Ltd… CAPS Rating: ****
ABB $16.18 Down -0.22 -1.34%
ABB CAPS Rating: *****
AIBYY.PK $0.76 Down +0.00 +0.00%
Allied Irish Banks CAPS Rating: ***
CHK $15.81 Up +0.23 +1.48%
Chesapeake Energy… CAPS Rating: ****

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