5-Star Stocks Poised to Pop: National Presto
Jan 3rd 2012 10:22AM
Updated Jan 3rd 2012 3:52PM
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified manufacturer National Presto Industries (NYS: NPK) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at National Presto's business and see what CAPS investors are saying about the stock right now.
National Presto facts
|Headquarters (founded)||Eau Claire, Wis. (1905)|
|Market Cap||$643 million|
|Industry||Aerospace and defense|
|Trailing-12-Month Revenue||$454 million|
|Management||Chairman/CEO Maryjo Cohen (since 1994)
CFO Randy Lieble (since 2008)
|Return on Equity (average, past 3 years)||19%|
|Cash/Debt||$118 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS. *Excludes special dividends.
On CAPS, 98% of the 595 members who have rated National Presto believe the stock will outperform the S&P 500 going forward.
The [Department of Defense] is always gonna need more ammo, and [National Presto's] new-ish contract with the DoD is good through 2015, so I'm comfortable with that. And as Boomers get older more of them are gonna need adult diapers, and [National Presto] has started broadening their customer base for their Absorbent division, so that's got good prospects. It's an eclectic mix of products they produce, to be sure ... The P/E is nice and low right now, too, so pluses there.
But before you run out and start gobbling up shares, some of National Presto's peers might actually be better suited to your own individual investing profile.
Boeing's (NYS: BA) shares, for example, have held up much better than National Presto's over the past several months, so it might be a better selection for those seeking a little price momentum. Meanwhile, L-3 Communications (NYS: LLL) sports a lower price-to-earnings multiple, making it a more favorable opportunity for value-hounds. And, of course, Procter & Gamble's (NYS: PG) sheer size continues to make it an ideal choice for blue-chip seekers. However, when you consider that National Presto boasts about $115 million in cash on its balance sheet with zero debt, the stock seems nicely suited for small-cap investors looking to minimize their downside.
What do you think about National Presto, 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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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of National Presto and L-3. Motley Fool newsletter services have recommended buying shares of L-3 and Procter& Gamble. Try any of our Foolish newsletter services free for 30 days.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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