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4-Star Stocks Poised to Pop: StoneMor Partners

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cemetery operator StoneMor Partners (Nasdaq: STON  ) has earned a respected four-star ranking.

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

StoneMor facts

Headquarters (Founded) Levittown, Pa. (1999)
Market Cap $471.4 million
Industry Personal services
Trailing-12-Month Revenue $225.4 million
Management Chairman/CEO Lawrence Miller
CFO William Shane
Return on Equity (Average, Past 3 Years) (1.6%)
Cash/Debt $20.1 million / $175.6 million
Dividend Yield 9.6%
Competitors Matthews International (Nasdaq: MATW  )
Service Corp. (NYSE: SCI  )
Stewart Enterprises (Nasdaq: STEI  )

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

On CAPS, 96% of the 251 members who have rated StoneMor believe the stock will outperform the S&P 500 going forward. These bulls include ccjeep and All-Star TSIF, who is ranked in the top 0.5% of our community.  

Just last month, ccjeep tapped StoneMor as a solid total-return opportunity: "Misunderstood by most, well run and will continue to pay hefty dividend plus capital appreciation."

Over the next five years, in fact, StoneMor is expected to grow its bottom line at a solid rate 13% annually. That's slightly faster than that of competitors like Matthews (11%), Service Corp. (10%), and Stewart (10%).

CAPS All-Star TSIF follows Fool Rising Star Alex Pape's lead and gets bullish on StoneMor:

Alex points out how StoneMor's business from a financial perspective is not well understood by the markets. StoneMor deals in funeral services from plots, perpetual care, funeral needs such as headstones, caskets, cremations etc. Cashflow in particular can be difficult to follow due to accounting requirements that Alex outlined very well. ...

While I wasn't interested in StoneMor last July at the $28 entry price, I am an opportunist and low volume equities that start triggering stop losses can be opportunities. ... The overall industry is recession proof!

What do you think about StoneMor, 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 StoneMor? 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 StoneMor. 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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Related Tickers

5/25/2012 3:59 PM
STON $24.97 Down -0.03 -0.12%
StoneMor Partners CAPS Rating: ****
STEI $6.32 Up +0.03 +0.48%
Stewart Enterprise… CAPS Rating: ****
SCI $11.43 Down -0.08 -0.70%
Service Corporatio… CAPS Rating: ***
MATW $30.08 Down -0.11 -0.36%
Matthews Internati… CAPS Rating: ****

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