4-Star Stocks Poised to Pop: 8x8

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, VoIP business phone service specialist 8x8 (NAS: EGHT) has earned a respected four-star ranking.

With that in mind, let's take a closer look at 8x8's business and see what CAPS investors are saying about the stock right now.

8x8 facts

Headquarters (Founded)Sunnyvale, Calif. (1987)
Market Cap$282.7 million
IndustryAlternative carriers
Trailing-12-Month Revenue$71.8 million
Management

Chairman/CEO Bryan Martin

CFO Daniel Weirich

Return on Equity (Average, Past 3 Years)15.7%
Cash/Debt$18.9 million / $0
Competitors

AT&T (NYS: T)

Verizon Communications (NYS: VZ)

Vonage (NYS: VG)


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

On CAPS, 97% of the 267 members who have rated 8x8 believe the stock will outperform the S&P 500 going forward. These bulls include BrentCarey and StephenSchub.

Earlier this summer, BrentCarey touched on 8x8's cloud computing niche: "[T]he need for this type of service makes strong sense in the small to medium size business market, particularly in a down economy, and management appears to be managing growth just fine."

Over the next five years, in fact, 8x8 is even expected to grow its bottom line at a brisk rate of 27.5% annually. That's much faster than that of rivals like AT&T (3.8%), Verizon (8.7%), and Vonage (2.5%).

CAPS member StephenSchub elaborates on the 8x8 bull case:

The management seems to be applying a symbiotic approach. They are moving into a "little guy in business" niche, with high quality and reliability in communications for businesses. They seem to be focused on saving the customer money while delivering just what is needed for efficient communications. Their stock is moving upward even on days when the market slumps.

What do you think about 8x8, 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!

Interested in another easy way to track8x8?Add it to your watchlist.

At the time this article was published We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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