Sunday, October 21, 2012

4-Star Stocks Poised to Pop: Ctrip.com

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese online travel company Ctrip.com International (Nasdaq: CTRP  ) has earned a respected four-star ranking.

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

Ctrip facts

Headquarters (Founded) Shanghai, China (1999)
Market Cap $3.7 billion
Industry Consumer services
Trailing-12-Month Revenue $526.4 million
Management Co-Founder/CEO Alfred Min Fan
CFO Jane Jie Sun
Return on Equity (Average, Past 3 Years) 21.6%
Cash/Debt $630.6 million / $0
Dividend Yield
Competitors Expedia (Nasdaq: EXPE  )

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

On CAPS, 96% of the 4,306 members who have rated Ctrip believe the stock will outperform the S&P 500 going forward. These bulls include TedKnudson and All-Star griderX, who is ranked in the top 5% of our community.

A few months ago , TedKnudson touched on the tailwinds working in Ctrip's favor: "China's middle class will continue to grow, increasing their travel, and continuing to shop for travel deal[s]."

Ctrip even boasts a robust three-year average operating margin of 34%. That's higher than that of U.S. counterparts Expedia (22%), priceline.com (Nasdaq: PCLN  ) (25%), and Travelzoo (Nasdaq: TZOO  ) (19%).

CAPS All-Star griderX expands on the outperform argument: "price has hit a historical floor ... it has not seen these type of historical and forward looking valuations since it was trading at around $10/share back in late 2008 early 2009! The growth in the Chinese middle class will reward holders of a major travel provider like [Ctrip] in the decades to come."

What do you think about Ctrip, 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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