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5-Star Stocks Poised to Pop: Superior Industries

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, aluminum wheel maker Superior Industries (NYSE: SUP  ) has earned a coveted five-star ranking.

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

Superior facts

Headquarters (Founded) Van Nuys, Calif. (1957)
Market Cap $532.9 million
Industry Auto parts and equipment
Trailing-12-Month Revenue $758.8 million
Management

Chairman/CEO Steven Borick

CFO Kerry Shiba

Return on Equity (Average, Past 3 Years) (4.2%)
Cash/Debt $177.5 million / $0
Dividend Yield 3.2%

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

On CAPS, 81% of the 84 members who have rated Superior believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Rich Smith (TMFDitty) and yooperking, both of whom are ranked in the top 10% of our community.

Late last month, Rich touched on Superior's first-class fundamentals: "Superior balance sheet, superior free cash flow, superior value -- the name says it all."

In fact, Superior currently sports a cheapish price-to-cash flow of 8.2. That represents a discount to other auto parts plays like BorgWarner (NYSE: BWA  ) (20.3), Johnson Controls (NYSE: JCI  ) (37.2), and Tenneco (NYSE: TEN  ) (11.9).

CAPS member yooperking expands on the outperform argument:
 

Superior Industries is the highest yielding stock (3%) of the Auto Parts Industry stocks in Value Line. The dividend is almost a rock solid guarantee since the company has absolutely no debt. The company designs and manufactures highly stylized aluminum and steel wheels that do wonders to enhance a vehicles appearance and should remain in strong demand.

What do you think about Superior, 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. Motley Fool newsletter services have recommended buying shares of BorgWarner. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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DocumentId: 1506347, ~/Articles/ArticleHandler.aspx, 5/27/2012 11:54:43 PM

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Related Tickers

5/25/2012 4:04 PM
SUP $16.49 Down -0.05 -0.30%
Superior Industrie… CAPS Rating: *****
TEN $28.02 Down -0.05 -0.18%
Tenneco, Inc. CAPS Rating: *
JCI $30.54 Down -0.29 -0.94%
Johnson Controls,… CAPS Rating: *****
BWA $74.33 Down -1.45 -1.91%
BorgWarner CAPS Rating: ****

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