Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese educational services provider New Oriental Education (NYSE:EDU) 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 New Oriental's business, and see what CAPS investors are saying about the stock right now.

New Oriental facts

Headquarters (founded)

Beijing, China (1993)

Market Cap

$2.03 billion


Education and Training Services

TTM Revenue

$238.69 million


Founder/CEO Yu Minhong
CFO Louis T. Hsieh

Return on Equity (average last two years)



Princeton Review (NASDAQ:REVU),
Washington Post (NYSE:WPO) (Kaplan)

CAPS members bullish on EDU also bullish on

China Mobile (NYSE:CHL),

CAPS members bearish on EDU also bearish on

Research in Motion (NASDAQ:RIMM),
First Solar (NASDAQ:FSLR)

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

Over on CAPS, fully 750 of the 795 members who have rated New Oriental -- some 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include Genkibro and tooyoungtoknow.

Earlier this month, Genkibro noted a few of the stock's bullish metrics: "Earnings growth is over 30%, way over competitors average, as are margins. ROE is nearly 20% and no debt, plenty of cash."

In a pitch just three days later, tooyoungtoknow shares that bullish feeling, offering some educational color behind the numbers:

I live and work in China as an English teacher and New Oriental is the standard bearer of quality English education (at least in the mind of all Chinese). Almost every middle-class Chinese is curious about the best ways to learn English and invariably the name of New Oriental comes up. They offer short-term classes on English test taking abilities. The Chinese obsession with tests, particularly English testing now that demand to go to overseas schools is increasing dramatically every year, will only increase several-fold in the coming years. I see no reason for their business model to fail as they've gained a name for themselves that nobody can even touch at this point and you can see their schools popping up everywhere by the day.

What do you think about New Oriental, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. New Oriental is a Motley Fool Global Gains pick, Princeton Review is a Motley Fool Hidden Gems selection, and Apple is choice of Stock Advisor. The Fool's disclosure policy always gets a perfect score.