Money Matters - Simplified

5-Star Stocks Poised to Pop: U.S. Ecology


Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hazardous waste disposal specialist U.S. Ecology (Nasdaq: ECOL) has earned a coveted five-star ranking.


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

U.S. Ecology facts

Headquarters (founded) Boise, Idaho (1952)
Market Cap $317.2 million
Industry Environmental and facilities services
Trailing-12-Month Revenue $89 million
Management

CEO James Baumgardner (since January 2010)

CFO Jeffrey Feeler (since July 2006)

Return on Equity (average, past 3 years) 17.9%
Cash/Debt $30.4 million / $0
Dividend Yield 4.2%
Competitors

Clean Harbors (NYSE: CLH)

EnergySolutions (NYSE: ES)

Waste Management (NYSE: WM)

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

On CAPS, 97% of the 524 members who have rated U.S. Ecology believe the stock will outperform the S&P 500 going forward. These bulls include RoboInvestor5000 and fro0ty.

Earlier this month , RoboInvestor5000 tapped U.S. Ecology as an attractive income opportunity: "[D]irty business, lots of room to get bigger, nice dividend."

U.S. Ecology's leading position in the highly regulated hazardous waste disposal space continues to support its five-star rating. The company even boasts a lower debt-to-equity ratio (0) than listed rivals Clean Harbors (0.4), EnergySolutions (1.8), and Waste Management (1.5), as well as other trash haulers such as Republic Services (NYSE: RSG)(0.9) and Casella Waste Systems (Nasdaq: CWST) (11.7).

CAPS member fro0ty also urges Fools not to waste the opportunity:

Industrial waste management is an untapped gold mine, meeting aggressive climate change targets doesn't just mean reducing CO2 emissions, but also proper and clean disposal of hazardous industrial waste. Long gone are the days when a company could just dump waste in the nearest river or lake, companies now have to pay for disposal!

Revenue was down in '09 and '10, so the stock price has been taking a battering, US Ecology is on sale at the moment, plus there is a nice dividend which will help to compound gains.

What do you think about U.S. Ecology, 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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