Sunday, June 9, 2013

Why CVR Partners Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen fertilizer producer CVR Partners (NYSE: UAN  ) has earned a coveted five-star ranking.

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

CVR facts

Headquarters (founded)

Sugar Land, Texas (2007)

Market Cap

$1.8 billion

Industry

Fertilizers and agricultural chemicals

Trailing-12-Month Revenue

$305.4 million

Management

CEO Byron Kelley (since 2011)

CFO Susan Ball (since 2012)

Trailing-12-Month Return on Equity

24.8%

Cash/Debt

$153.2 million / $127.5 million

Dividend Yield

10%

Competitors

Agrium

CF Industries

Terra Nitrogen 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 99% of the 341 members who have rated CVR believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star PsychoDr, succinctly summed up the CVR bull case for our community:

I like the potential of this company. Their stock took a bit of a hit recently, but it had nothing to do with fundamentals. In fact recent earnings were depressed as company built out capacity to refine more [urea ammonium nitrate] than they had in the past. This is important because [urea ammonium nitrate] is the next step in fertilizer production and has significantly higher profit margin. I also like their dividend policy which I will leave for you to research.   

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, CVR may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

No comments:

Post a Comment