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4-Star Stocks Poised to Pop: Cosan

By Brian Pacampara – Updated Apr 6, 2017 at 4:13PM

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian sugar and ethanol producer Cosan (NYSE: CZZ) has earned a respected four-star ranking.

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

Cosan facts

Headquarters (Founded)

Sao Paulo, Brazil (since 2007)

Market Cap

$3.25 billion


Packaged foods and meats

Trailing-12-Month Revenue

$10.4 billion


Chairman/CEO Rubens Mello

CFO Marcelo Martins

Trailing-12-Month Return on Equity



$738.9 million / $4.56 billion

Dividend Yield



Bunge (NYSE: BG)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 364 members who have rated Cosan believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Matt8265, who is ranked in the top 10% of our community, and siempresuamor.

Earlier this year, Matt8265 tapped Cosan as a particularly sweet selection: "Seems logical that sugar is one of the last commodities to rocket. So many uses. 10B in sales, good agreement with Shell."

Over the next five years, in fact, Cosan is expected to grow its bottom line at a whopping rate of 53.9% annually. That's much faster than listed rival Bunge, as well as other ethanol plays like Archer-Daniels-Midland (NYSE: ADM) (7.8%) and Pacific Ethanol (NYSE: PEIX) (30%).

CAPS member siempresuamor elaborates on the Cosan bull case:

The US refuses to use energy efficient sugar to make ethanol, wastefully burning corn instead, creating an greater need for foreign ethanol than ever before. Ethanol gas percentages have been approved up to 15% from 10%. The lower gas mileage for all vehicles using it as fuel will increase the need for both imported gas and imported ethanol. Brazil will keep the largest relative world portion of ethanol production for many years. Their production process is at least 20 years ahead of the world. Cosan is the largest producer in Brazil. An easy pick!

What do you think about Cosan, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned.

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 Fool's disclosure policy always gets a perfect score.

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