Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity transmission specialist ITC Holdings
With that in mind, let's take a closer look at ITC's business and see what CAPS investors are saying about the stock right now.
ITC facts
| Headquarters (Founded) | Novi, Mich. (2001) |
| Market Cap | $3.3 billion |
| Industry | Electric utilities |
| Trailing-12-Month Revenue | $664.28 million |
| Management |
Founder/CEO Joseph Welch CFO Cameron Bready |
| Return on Equity (Average, Past 3 Years) | 13.3% |
| Cash/Debt | $74.26 million / $2.46 billion |
| Dividend Yield | 2.1% |
| Competitors |
American Electric Power
El Paso Electric
Northeast Utilities |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 259 members who have rated ITC believe the stock will outperform the S&P 500 going forward. These bulls include istraveler and jerry80118.
Late last month, istraveler tapped ITC as a particularly powerful pick: "[T]he trend is your friend. Electrical consumption can be expected to go up and utilities will seek ways to be a low cost producer. Even in spite of the coal industry resisting, a gradual decade shift is likely from coal toward natural gas and wind."
ITT remains a potent play on the increasing support for wind generation and upgrades to our electric grid. Over the next five years, ITC is even expected to grow its bottom line (16.4% per annum) at a much faster pace than traditional rivals like American Electric (3%), El Paso (5%), and Northeast Utilities (7.3%), as well as other utility plays like Duke Energy
CAPS member jerry80118 elaborates:
ITC is building their lines to last. That means over the long term they will not begin to see large costs to maintain their lines. Rapid expansion of wind energy in the plains states means there is lots of room for growth, and ITC is already benefiting from this trend in Kansas and Iowa.
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