Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy recovery device specialist Energy Recovery (NASDAQ:ERII) has earned a coveted five-star ranking.

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

Energy Recovery facts

Headquarters (Founded)

San Leandro, Calif. (1992)

Market Cap

$318 million


Industrial machinery

Trailing-12-Month Revenue

$53 million


CEO Gonzalo Pique (since 2002)
CFO Thomas Willardson (since 2007)

Trailing-12-Month Return on Equity



$75 million / $0.4 million


General Electric (NYSE:GE)
Siemens (NYSE:SI)

Other Highly Rated Industrial Machinery Stocks

United Technologies (NYSE:UTX)
Caterpillar (NYSE:CAT)
Deere (NYSE:DE)
Illinois Tool Works (NYSE:ITW)

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

On CAPS, 99% of the 120 All-Star members who have rated Energy Recovery believe the stock will outperform the S&P 500 going forward. These bulls include Seansonfire and TMFBreakerThiel, both of whom are ranked in the top 5% of our community.

Just last month, Seansonfire singled out the stock as a nice pick for growth-thirsty investors: "Great growth potential, good balance sheet, great strategic moves as of late. ... If you believe as I do, that Water Scarcity will be a major issue facing the world over the next 25 years, you need to invest in this stock."

In an earlier pitch, TMFBreakerThiel also urged Fools to ride the fresh water wave:

This is first and foremost a bullish call on the growth of desalination projects around the globe, which I think is a very safe source of growth over the coming decade. But Energy Recovery also has a great business on best-in-class energy recovery devices for desalination plants, and will grow both with new installations and retrofits.

What do you think about Energy Recovery, 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. The Fool's disclosure policy always gets a perfect score.