4-Star Stocks Poised to Pop: Air Products & Chemicals

Diposting oleh nangsa on Senin, 21 Maret 2011

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hydrogen and helium supplier Air Products & Chemicals (NYSE: APD  ) has earned a respected four-star ranking.

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

Air Products facts

Headquarters (founded)
   

Allentown, Pa. (1940)

Market Cap
   

$18.9 billion

Industry
   

Diversified chemicals and industrial gases

Trailing-12-Month Revenue
   

$9.24 billion

Management
   

Chairman/CEO John McGlade

CFO Paul Huck

Return on Equity (average, past 3 years)
   

17.7%

Cash/Debt
   

$255.3 million / $3.99 billion

Dividend Yield
   

2.2%

Competitors
   

Airgas (NYSE: ARG  )

Praxair (NYSE: PX  )

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

On CAPS, 97% of the 644 members who have rated Air Products believe the stock will outperform the S&P 500 going forward. These bulls include lenvan and mrindependent, who is ranked in the top 2% of our community.

Three weeks ago, lenvan touched on the factors working Air Products' favor:

    Every human endeavor requires industrial gas. The barriers to entry are very high as the industry is very capital intensive. [Air Products] is well positioned in Asia and has excellent management.

Currently, Air Products sports a P/E of 18.3. That represents a discount to main rivals Airgas (23.3) and Praxair (25.3), as well as other chemical plays such as Dow Chemical (NYSE: DOW  ) (20.8).

Last October, CAPS All-Star mrindependent expanded on Air Products as an ideal income opportunity:

    This stock qualifies for my high stable dividends screen. ... The idea of the screen is to look for stocks that meet the following criteria: (1) dividend yields above 2% (2) stock seems undervalued and (3) dividend appears to be sustainable or growing. The current dividend of Air Products and Chemicals is about 2.4%. Current ROE is 20%.

What do you think about Air Products, 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!


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