5-Star Stocks Poised to Pop: Darling (DAR)

5-Star Stocks Poised to Pop: Darling

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, food industry waste recycler Darling International (NYSE: DAR ) has earned a coveted five-star ranking.

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

Darling facts

Headquarters (Founded)	Irving, Texas (1882)
Market Cap	$1.64 billion
Industry	Waste management
Trailing-12-Month Revenue	$1.59 billion
Management	Chairman/CEO Randall Stuewe (since 2003) CFO John Muse (since 2000)
Return on Equity (Average, Past 3 Years)	15.3%
Cash/Debt	$28.6 million / $310 million

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97.5% of the 1,086 members who have rated Darling believe the stock will outperform the S&P 500 going forward. These bulls include sparkedog69 and All-Star TSIF, who is ranked in the top 0.1% of our community.

This past summer, sparkedog60 tapped Darling as a particularly special selection: "Darling takes the nastiest part of food production and turns it into something of value. Good opportunity to buy."

In fact, Darling currently sports a cheapish P/E of 10. That represents a discount to more conventional waste management plays like Waste Management (NYSE: WM ) (15.2), Republic Services (NYSE: RSG ) (18.9), and Stericycle (Nasdaq: SRCL ) (31.1).

CAPS All-Star TSIF elaborates on the bargain opportunity:

[F]orward P/E of about 8.5. Darling is the only publically traded company in their field and their moat widens with smart acquisitions. ... Not a sexy business, and not a lot of attention. Decent metrics overall, but debt is higher than I would prefer, but it's getting paid down rapidly. ... A solid company that deserves watching as they continue seeking growth potential.

What do you think about Darling, 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!

Interested in another easy way to track Darling? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Darling and Waste Management. Motley Fool newsletter services have recommended buying shares of Waste Management, Republic Services, and Stericycle, as well as writing a covered strangle position on Waste Management. 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.

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 icon found on every comment.

Report this Comment On November 15, 2011, at 5:43 PM, SwiperFox wrote:

I've owned a small bit of DAR for about a year now. It's down 6% in that time.
I still believe, but it looks like the kind of thing that need to be ignored for a few years. I'm not expecting it to "pop."
Report this Comment On November 16, 2011, at 9:32 AM, TSIF wrote:

Normally these canned headlines don't do MF any favors. When I upthumbed it I was looking for a long term upcline slightly above the S&P gyrations and maybe a short covering couple of percent as the silly shorts were up to 4.9 Million or 4% of the float, or 4X the daily norm.
In MF's defense this time, however, the stock is up 10% in two days. In this market, I would call it a pop. Earnings are causing pops, but I don't think it has much more upside left as the 4.9 Million shorts cover and reload.
The poised to pop and poised to drop headlines need some work. They aren't what CAPS and MF are all about. They are about slow steady growth over a long period of time. Good luck iwth your Darling!

updated 2 days ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

DAR	$14.26		-0.04	-0.28%
Darling Internatio…		CAPS Rating:

WM	$32.96		-0.13	-0.39%
Waste Management,…		CAPS Rating:

SRCL	$86.31		-0.49	-0.56%
Stericycle		CAPS Rating:

RSG	$26.81		+0.15	+0.56%
Republic Services,…		CAPS Rating:

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5-Star Stocks Poised to Pop: Darling

Comments from our Foolish Readers

Report this Comment On November 15, 2011, at 5:43 PM, SwiperFox wrote:

Report this Comment On November 16, 2011, at 9:32 AM, TSIF wrote:

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