Tuesday, September 18, 2012

4-Star Stocks Poised to Pop: Covanta

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy-from-waste technologist Covanta Holding (NYSE: CVA  ) has earned a respected four-star ranking.

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

Covanta facts

Headquarters (founded) Morristown, N.J. (1960)
Market Cap $2.1 billion
Industry Environmental and facilities services
Trailing-12-Month Revenue $1.7 billion
Management CEO Anthony Orlando (since 2004)
CFO Sanjiv Khattri (since 2010)
Return on Equity (average, past 3 years) 4.7%
Cash/Debt $267.0 million / $2.2 billion
Dividend Yield 3.8%
Competitors Panda Energy International
Waste Management

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

On CAPS, 96% of the 349 members who have rated Covanta believe the stock will outperform the S&P 500 going forward.

Just the other day, one of those Fools, kurtdabear, brought Covanta's improving fundamentals to our community's attention:"[Covanta] has recently made great strides in restoring shareholder value and securing the company's future by raising dividends, buying back shares and restructuring debt. The new debt arrangements have increased flexibility and availability of credit while also extending the average debt maturity by six years."

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. Of course, despite a strong four-star rating, Covanta may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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