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Why Lear Is Poised to Outperform

By Brian D. Pacampara, CFA - Apr 5, 2013 at 1:15PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto parts supplier Lear (LEA -0.49%) has earned a coveted five-star ranking.

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

Lear facts

Headquarters (founded)

Southfield, Mich. (1917)

Market Cap

$5.1 billion

Industry

Auto parts and equipment

Trailing-12-Month Revenue

$14.6 billion

Management

CEO Matthew Simoncini (since 2011)

CFO Jeffrey Vanneste (since 2012)

Return on Capital (average, past 3 years)

28.1%

Cash/Debt

$1.4 billion / $626.3 million

Dividend Yield

1.2%

Competitors

BorgWagner

Johnson Controls

Magna International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 111 members who have rated Lear believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, JMacSol, succinctly summed up the Lear bull case for our community: "Best of breed, plenty of growth prospects ahead, lots of cash, should be increasing dividend in the near future."

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Lear Corporation Stock Quote
Lear Corporation
LEA
$132.76 (-0.49%) $0.66

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

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