4-Star Stocks Poised to Pop: TIBCO Software

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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, middleware and infrastructure software specialist TIBCO Software (NAS: TIBX) has earned a respected four-star ranking.

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

TIBCO facts

Headquarters (Founded)Palo Alto, Calif. (1996)
Market Cap$4.31 billion
IndustryApplication software
Trailing-12-Month Revenue$872 million
ManagementChairman/CEO Vivek Ranadive
CFO Sydney Carey
Return on Equity (Average, Past 3 Years)9.8%
Cash/Debt$272.5 million / $38.7 million
CompetitorsIBM (NYS: IBM)
Oracle (NAS: ORCL)
SAP (NYS: SAP)

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

On CAPS, 93% of the 415 members who have rated TIBCO believe the stock will outperform the S&P 500 going forward. These bulls include Gonzhouse and BenSaanich.

This past summer, Gonzhouse listed several of TIBCO's positives:

The last independent [business intelligence] vendor of good size left. Consistently growing market share, very profitable, on leading technology curve. A winner either way: if not taken over, will continue growth in the BI space. If taken over, should get a good premium.

Over the next five years, in fact, TIBCO is expected to grow its bottom line at a solid rate of 14.5% annually. That's slightly faster than competitors like IBM (11.8%), Oracle (13.6%), and SAP (13%).

CAPS member BenSaanich elaborates on the TIBCO bull case:

Because of the nature of the business, customers will become reliant on the software and tend to keep paying maintenance fees. TIBCO is dominant on Wall Street infrastructures and is likely to increase market share. For these reasons I expect TIBCO -- which serves a powerful market sector (although a niche) to keep growing. ... [T]heir offerings have a distinct edge in maturity over Oracle's former BEA products.

What do you think about TIBCO, 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 trackTIBCO?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. Motley Fool newsletter services have recommended buying shares of TIBCO. The Fool owns shares of Oracle and IBM. 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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