Recs

9

4-Star Stocks Poised to Pop: Zoltek

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, carbon fiber maker Zoltek Companies (Nasdaq: ZOLT  ) has earned a respected four-star ranking.

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

Zoltek facts

Headquarters (Founded) St. Louis (1975)
Market Cap $333.7 million
Industry Specialty chemicals
Trailing-12-Month Revenue $131.16 million
Management

Founder/CEO Zsolt Rumy

CFO Andrew Whipple

Return on Equity (Average, Past 3 Years) (0.3%)
Cash/Debt $18.6 million / $9 million
Competitors

Cytec Industries (NYSE: CYT  )

Hexcel (NYSE: HXL  )

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

On CAPS, 94.5% of the 747 members who have rated Zoltek believe the stock will outperform the S&P 500 going forward. These bulls include TrackSterman and davidm8797.

Just last month, TrackSterman included Zoltek in a group of stocks that have yet to completely turn around:

Even as the market has rebounded sharply after the 2008 economic crisis, many individual stocks remain well below pre-recession levels. These companies did just fine when the economy was more robust. As the economy rebounds, these shares should post outsized gains.

In fact, shares of Zoltek are basically unchanged over the past year, while close rivals Cytec and Hexcel are up roughly 40% and 50%, respectively, over the same period. And while carbon fiber makers like Dow Chemical (NYSE: DOW  ) , DuPont (NYSE: DD  ) , and Ashland (NYSE: ASH  ) sport lower price multiples than Zoltek, they're already quite large and extend into several different chemical segments.

CAPS member davidm8797 expands on Zoltek as a potent and pure play on carbon fiber:

In ten to fifteen years, all cars will be made out of carbon fiber. And airplanes. And guns. ... Add to that the "green effect" of making things out of things other than heavy, poisonous metals, and carbon fiber is a sure shot. Carbon fiber also has a cool factor to it. All super cars are made out of it. It's super light, and safer during car wrecks. I wish there was a carbon fiber index, but most of the companies are private or in China -- I checked. Until then I'll have to settle with [Zoltek], but I'm really not complaining

What do you think about Zoltek, 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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (9)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1379688, ~/Articles/ArticleHandler.aspx, 11/28/2014 12:54:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated 1 day ago Sponsored by:
DOW 17,827.75 12.81 0.07%
S&P 500 2,072.83 5.80 0.28%
NASD 4,787.32 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/26/2014 4:04 PM
ASH $113.50 Up +0.98 +0.87%
Ashland, Inc. CAPS Rating: *****
CYT $49.14 Up +0.16 +0.33%
Cytec Industries,… CAPS Rating: *****
DD $71.47 Down -0.21 -0.29%
E.I. du Pont de Ne… CAPS Rating: ****
DOW $51.76 Up +0.37 +0.72%
The Dow Chemical C… CAPS Rating: ****
HXL $43.74 Down -0.10 -0.23%
Hexcel Corp CAPS Rating: ****
ZOLT.DL $0.00 Down +0.00 +0.00%
Zoltek Companies,… CAPS Rating: ***

Advertisement