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Why MTS Systems Is Poised to Keep Poppin'

By Brian D. Pacampara, CFA – Apr 15, 2013 at 10:04AM

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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, road simulator specialist MTS Systems (MTSC) has earned a coveted five-star ranking.

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

MTS facts

Headquarters (founded)

Eden Prairie, Minn. (1966)

Market Cap

$888.9 million

Industry

Electronic equipment and instruments

Trailing-12-Month Revenue

$551.2 million

Management

CEO Dr. Jeffrey Graves

CFO Susan Knight

Return on Equity (average, past 3 years)

20.9%

Cash/Debt

$47.9 million / $71.0 thousand

Dividend Yield

2.1%

Competitors

Illinois Tool Networks

Moog

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

On CAPS, 90% of the 83 members who have rated MTS believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, bnmanager, succinctly summed up the MTS bull case for our community:

This company goes under the radar of investment firms due to its small size. However, I think this company is set to grow quite well. It also pays steady dividends, and its share price has steadily grown.

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

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Illinois Tool Works. The Motley Fool owns shares of Moog. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

MTS Systems Stock Quote
MTS Systems
MTSC

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

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