Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, building materials supplier Headwaters (NYSE:HW) 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 Headwaters' business, and see what CAPS investors are saying about the stock right now.

Headwaters facts

Headquarters (founded) South Jordan, Utah (1987)

Market Cap

$285.28 million


Construction Materials

TTM Revenue

$886.4 million


Chairman/CEO Kirk Benson (since 1999)

CFO Steven Stewart (since 2007)

Return on Capital (average, last three years)



Alcoa (NYSE:AA),

Cemex (NYSE:CX)

CAPS members bullish on HW also bullish on:

Chesapeake Energy (NYSE:CHK),

Suntech Power

CAPS members bearish on HW also bearish on:

Toll Brothers (NYSE:TOL),

Centex (NYSE:CTX)

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

Over on CAPS, 736 of the 793 members who have rated Headwaters -- or 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include KipLargo and OtherOracleOfOMA.

Last week, KipLargo drew a political parallel to describe Headwaters: "Will be annointed by the Obama administration. It honestly could be what [Halliburton (NYSE:HAL)] was to the Bush administration."

In an earlier pitch from last month, OtherOracleOfOMA shares that bullishness, writing:

Exceptional company that has had a run of freakishly bad luck recently. Their building materials segment in particular should make a big comeback, as their insulator concrete will become increasingly used to meet higher building energy efficiency standards.

Also, the bottom line is significantly understated due to goodwill write-downs owing to the housing market; look at the adjusted income to getter a better picture of the firm's real economic value.

What do you think about Headwaters, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.