Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, POSCO (NYSE:PKX) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

POSCO facts

Headquarters (Founded)

Seoul, South Korea (1968)

Market cap



Steel and iron

TTM revenue

$33.8 billion


CEO Ku-Taek Lee

COO Joon-Yang Chung

Return on equity (avg. last three years)


CAPS players bullish on PKX also bullish on


Southern Copper (NYSE:PCU)

Freeport-McMoRan Copper & Gold (NYSE:FCX)

CAPS players bearish on PKX also bearish on


Research In Motion (NASDAQ:RIMM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 369 of 372 (99%) of the All-Star players who have rated POSCO believe the stock will outperform the S&P 500 going forward. These All-Star bulls include NetscribesManufac and Ayax2006, both of whom are ranked in the top 10% of our community.

Last year, NetscribesManufac noted that POSCO is "one of the lowest-cost steel producers in the world and benefits from having some of the most technologically advanced mills, a labor force that works six days a week, captive power plants and port facilities." That helps it post high operating margins relative to its peers.

A more recent pitch from this spring, written by Ayax2006, shares that bullish logic, while touching on the stock's present valuation:

Korean steel producer trading at attractive value. The firm has good growth prospects, it sells its products at lower prices than competitors and should be able to gain market share, as well as raise its prices. This also provides downside protection in case commodity prices come down. Demand for steel will continue to be strong as emerging markets catch up and countries keep investing in infrastructure.

What do you think about POSCO, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.