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4-Star Stocks Poised to Pop: Fuel Tech

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

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, air pollution control company Fuel Tech (NASDAQ:FTEK) 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 Fuel Tech's business, and see what CAPS investors are saying about the stock right now.

Fuel Tech facts

Headquarters (founded)

Warrenville, Illinois (1987)

Market Cap

$218.50 million

Industry

Pollution and Treatment Controls

TTM Revenue

$95.54 million

Management

CEO John Norris, Jr. (since March 2006)

CFO John Graham (since June 2008)

Return on Equity (average last three years)

15%

Competitors

Foster Wheeler (NASDAQ:FWLT),

Ashland (NYSE:ASH)

CAPS members bullish on FTEK also bullish on

Apple (NASDAQ:AAPL),

General Electric (NYSE:GE)

CAPS members bearish on FTEK also bearish on

First Solar (NASDAQ:FSLR),

General Motors (NYSE:GM)

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

Over on CAPS, fully 986 of the 1,023 members who have rated Fuel Tech -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star whoILMnc and LTContrarian.

Earlier this week, whoILMnc touched on the stock's long-term potential: "If coal has the future I think it does, even though very speculative, it is hard to see how [Fuel Tech] will not share in it."

In an earlier pitch from last month, LTContrarian agrees, stressing Fuel Tech's tantalizing tailwinds:

Although this company's stock price will likely be choppy over the next 6-12 months, right now is probably a great entry point for anyone interested in a long term position. Demographic trends are heavily in Fuel Tek's favor. Management is very solid and the company is becoming the gold standard in the industry with excellent proprietary products. The fact that China will be building approximately 1 coal plant per day into the forseeable future certainly bodes well for Fuel Tek going forward.

What do you think about Fuel Tech, 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. Apple is a Motley Fool Stock Advisor pick. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Fuel Tech, Inc. Stock Quote
Fuel Tech, Inc.
FTEK
$1.39 (6.92%) $0.09
Apple Inc. Stock Quote
Apple Inc.
AAPL
$169.24 (2.62%) $4.32
General Electric Company Stock Quote
General Electric Company
GE
$77.14 (2.95%) $2.21
First Solar, Inc. Stock Quote
First Solar, Inc.
FSLR
$114.51 (5.04%) $5.50
General Motors Company Stock Quote
General Motors Company
GM
$37.95 (3.63%) $1.33
Ashland Global Holdings Inc. Stock Quote
Ashland Global Holdings Inc.
ASH
$106.42 (3.68%) $3.78

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

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