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4-Star Stocks Poised to Pop: CNH Global

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:01PM

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Market-trouncing returns could be written in these four stars.

Based on the aggregated intelligence of 120,000 investors participating in Motley Fool CAPS, the Fool's free investing community, agricultural equipment manufacturer CNH Global (NYSE:CNH) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

CNH facts

Headquarters (founded)

Amsterdam, Netherlands (1991)

Market Cap

$3.87 billion

Industry

Farm and construction machinery

Trailing-12-Month Revenue

$18.87 billion

Management

CEO Harold Boyanovsky (since 2005)
CFO Rubin McDougal (since 2006)

Return on Equity (average last three years)

9.0%

Dividend Yield

3.0%

Competitors

Deere (NYSE:DE)
Oshkosh (NYSE:OSK)

CAPS members bullish on CNH also bullish on:

PotashCorp (NYSE:POT)
Freeport-McMoRan (NYSE:FCX)

CAPS members bearish on CNH also bearish on:

AGCO (NYSE:AG)
Ford Motor (NYSE:F)

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

Over on CAPS, some 93% of the 273 members who have rated CNH believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star bklynmp3j and pjani06.

In October, bklynmp3j wrote that CNH's "global scope and scale in the agricultural and construction equipment industries make it well positioned for an early recovery. Demand will only increase."

In a pitch from a few days earlier, pjani06 agrees, highlighting the stock's attractive valuation and tasty yield (which has remained relatively unchanged):

This is as near a bottom for this stock you can get. Excellent growing company within a global sector of the world economy that has still been receiving lending money this past year from the world's banks. This company has poised itself well to ride the recent uptrends and shares its fortunes with shareholders offering a 3% yield now representing a less than 20% payout!

What do you think about CNH, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
F
$16.18 (2.21%) $0.35
Oshkosh Corporation Stock Quote
Oshkosh Corporation
OSK
$86.36 (0.19%) $0.16
Freeport-McMoRan Inc. Stock Quote
Freeport-McMoRan Inc.
FCX
$31.62 (-0.16%) $0.05
Nutrien Stock Quote
Nutrien
POT
Deere & Company Stock Quote
Deere & Company
DE
$368.16 (1.72%) $6.24
First Majestic Silver Stock Quote
First Majestic Silver
AG
$8.37 (2.95%) $0.24

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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