5-Star Stocks Poised to Pop: Infinera

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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, optical networking specialist Infinera (NAS: INFN) has earned a coveted five-star ranking.

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

Infinera facts

Headquarters (Founded)Sunnyvale, Calif. (2000)
Market Cap$868.3 million
IndustryCommunications equipment
Trailing-12-Month Revenue$436.04 million
Management

CEO Thomas Fallon (since 2010)

CFO Ita Brennan (since 2010)

Return on Equity (Average, Past 3 Years)(12.9%)
Cash/Debt$268.59 million / $0
Competitors

Alcatel-Lucent (NYS: ALU)

Ericsson (NAS: ERIC)

Cisco Systems (NAS: CSCO)

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

On CAPS, 98% of the 1,681 members who have rated Infinera believe the stock will outperform the S&P 500 going forward. These bulls include All-Star cibient, who is ranked in the top 15% of our community, and scotinus.

Just last month, cibient brought some insider information to our community's attention: "Not my usual type of pick, but the CEO and another insider just bought into very heavily. Trading near the bottom of its 52 week range and this stock is supposed to be a 'rule breaker' style stock."

Infinera even boasts roughly $269 million in cash on its balance sheet with zero debt. Meanwhile, much larger rivals Alcatel-Lucent, Ericsson, and Cisco sport debt-to-equity ratios of 109%, 21%, and 36%, respectively.

CAPS member scotinus elaborates on the Infinera bull case:

Has had a decent haircut recently due to timing of [40Gb/s] solution. But it's the [100Gb/s] transition in 2012/13 that will count and Infinera are in good position to capitalize. There may be more volatility in months to come but current price will likely be close to the low. If 2012 lab trials and [100Gb/s] introduction go well, there should be plenty upside to come.

What do you think about Infinera, 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 trackInfinera?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Infinera and Cisco and has created a bull call spread position on Cisco.Motley Fool newsletter serviceshave recommended buying shares of Infinera and Cisco. Try any of our Foolish newsletter services free for 30 days.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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