Tuesday, July 23, 2013

Why ITC Remains an Electric Opportunity

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity transmission specialist ITC Holdings (NYSE: ITC  ) has earned a coveted five-star ranking.

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

ITC facts

Headquarters (founded)

Novi, Mich. (2001)

Market Cap

$4.8 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$851.1 million

Management

Founder/CEO Joseph Welch

CFO Cameron Bready

Return on Equity (average, past 3 years)

14.1%

Cash / Debt

$72.7 million / $3.4 billion

Dividend Yield

1.6%

Competitors

American Electric Power

El Paso Electric

Northeast Utilities

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

On CAPS, 96% of the 295 members who have rated ITC believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, fellow Fool Billy Kipersztok (TMFTailwind), succinctly summed up the outperform case for our community:

ITC is a utility focused solely on one activity -- electricity transmission. This laser-focus on a core competency PLUS favorable public policy should provide continued development opportunities for this growing, acquisitive company. EPS have grown at a compounded annual rate of nearly 20% over the last 5 years, and CEO (/founder/chairman/president) Joseph Welch is very experienced, having spent his entire career in the utility industry.

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

In fact, one home run investing opportunity has been slipping under Wall Street's radar for months. But it won't stay hidden much longer. Forward-thinking energy players like GE and Ford have already plowed sizable amounts of research capital into this little-known stock... because they know it holds the key to the explosive profit power of the coming "no choice fuel revolution." Luckily, there's still time for you to get on board if you act quickly. All the details are inside an exclusive report from The Motley Fool. Click here for the full story!

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