Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian homebuilder Gafisa
With that in mind, let's take a closer look at Gafisa's business and see what CAPS investors are saying about the stock right now.
Gafisa facts
Headquarters |
Sao Paulo, Brazil |
Market Cap |
$2.71 billion |
Industry |
Homebuilding |
Trailing-12-Month Revenue |
$2.2 billion |
Management |
CEO Wilson De Oliveira (since 2005) CFO Alceu Calciolari (since 2006) |
Return on Equity (Average, Past 3 Years) |
11.8% |
Cash/Debt |
$733.9 million / $1.74 billion |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 2,979 members who have rated Gafisa believe the stock will outperform the S&P 500 going forward. These bulls include 2win and LoveMeSomeGreen.
Late last year, 2win highlighted Gafisa as a rather sporting selection: "Brazil real estate is booming, and will boom until after Olympics and World Cup in 2014. Buy the dip."
Over the next five years, Gafisa is even expected to grow its bottom line at a brisk pace of 44% per annum. That's much faster than foreign homebuilders Homex Development
CAPS member LoveMeSomeGreen expands on the outperform case:
Oil and commodities prices will continue to tick up as demand increases. Better margins on exported oil means better growth for Brazil. Better growth means an expanding middle class in Brazil. An expanding middle class in Brazil will mean continued growth from mid-wealth home-builder GFA. Mmmmm logic.
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