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5-Star Stocks Poised to Pop: Middleby

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:53PM

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Market-trouncing returns could be written in this five-star stock.

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, restaurant equipment maker Middleby (NASDAQ:MIDD) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.

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

Middleby facts

Headquarters (founded)

Elgin, Illinois (1888)

Market Cap

$491.6 million


Industrial machinery

TTM Revenue

$646.4 million


Chairman/CEO Selim Bassoul
CFO Timothy Fitzgerald

Return on Capital (average, last three years)



FMC Technologies (NYSE:FTI)
Manitowoc (NYSE:MTW)

CAPS members bullish on MIDD also bullish on:

Buffalo Wild Wings (BWLD)

CAPS members bearish on MIDD also bearish on:

General Motors (NYSE:GM)
Citigroup (NYSE:C)

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

Over on CAPS, 2,815 of the 2,906 members who have rated Middleby -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include blakeseely and dcbbrinks.

In October, blakeseely noted that Middleby "took on a ton of extra debt to make the TurboChef (NASDAQ:OVEN) purchase, and I think it's arguable that it was not a proper time to take on that much debt. On the other hand, it's easy to argue that it was a smart move by management-taking on the debt to buy [TurboChef] at a really good price."

In a pitch from earlier this month, dcbbrinks followed that line of thinking, writing:

Americans will continue to eat out and management will do an excellent job of integrating the latest acquisitions into the business cost effectively in the long term. FCF continues to grow 20% over the past 4 years and will continue with the latest acquistions. Although the debt level is high because of the recent acquisitions management has already started to pay down the long term debt balance based on 9/30 numbers.

What do you think about Middleby, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro, and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Middleby and Buffalo Wild Wings are Motley Fool Hidden Gems picks. Apple is a Stock Advisor selection. The Fool owns shares of Buffalo Wild Wings. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

The Middleby Corporation Stock Quote
The Middleby Corporation
$156.98 (3.44%) $5.22
Apple Inc. Stock Quote
Apple Inc.
$172.10 (2.14%) $3.61
Citigroup Inc. Stock Quote
Citigroup Inc.
$54.38 (0.70%) $0.38
General Motors Company Stock Quote
General Motors Company
$39.48 (2.65%) $1.02
TechnipFMC plc Stock Quote
TechnipFMC plc
$9.08 (3.65%) $0.32
The Manitowoc Company, Inc. Stock Quote
The Manitowoc Company, Inc.
$11.22 (0.27%) $0.03

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

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