Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, integrated forest products company Weyerhaeuser (NYSE: WY ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Weyerhaeuser's business and see what CAPS investors are saying about the stock right now.
Weyerhaeuser facts
| Headquarters (Founded) |
Federal Way, Wash. (1900) |
| Market Cap |
$9.09 billion |
| Industry |
Specialized REITs |
| Trailing-12-Month Revenue |
$6.66 billion |
| Management |
CEO Daniel Fulton (since 2008)
CFO Patricia Bedient (since 2007)
|
| Return on Equity (Average, Past 3 Years) |
(0.9%) |
| Cash/Debt |
$881 million / $4.51 billion |
| Dividend Yield |
3.5% |
| Competitors |
International Paper (NYSE: IP )
Plum Creek Timber (NYSE: PCL )
Rayonier (NYSE: RYN )
|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 85% of the 481 members who have rated Weyerhaeuser believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Lituus, who is ranked in the top 10% of our community, and oldmanarchitect.
This past summer, Lituus tapped Weyerhaeuser as an attractive bargain pick:
This is a solid company that has been around for ages. Obviously the price is depressed due to the poor housing market but in the near future there will be a big need for new housing and [Weyerhaeuser] should benefit. Nothing to lose and good upside; gotta like that.
In fact, Weyerhaeuser sports a particularly paltry P/E of 5.9. That represents a clear discount to competitors like International Paper (9.0), Rayonier (20.9), and Plum Creek (34.8).
CAPS member oldmanarchitect elaborates on the bull case:
Long Term Buy and Hold. ... [C]atalyst is the recovery of US home building. I can't tell you how many people I know of who have moved in with other family members over the last few years as a result of the troubled economy. Everyone of those families owned a house 5 years ago, and are now sitting on the sideline waiting for their personal finances to get back on track to the point where they cany buy into the market again. The US population is still growing -- People have to live somewhere. The housing market will not only recover over the next five years, it is going to explode (Not to 1950 levels, but perhaps to those seen in the 1970's). Companies in a position to feed that explosion will kill. Buy Homemakers-Buy land-Buy Renewable Lumber.
What do you think about Weyerhaeuser, 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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