4-Star Stocks Poised to Pop: STEC

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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, solid-state drive specialist STEC (NAS: STEC) has earned a respected four-star ranking.

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

STEC facts

  
Headquarters (Founded)Santa Ana, Calif. (1990)
Market Cap$430.2 million
IndustryData storage devices
Trailing-12-Month Revenue$343.8 million
ManagementCo-Founder/Chairman/CEO Manouch Moshayedi Co-Founder/President/COO Mark Moshayedi
Return on Equity (Average, Past 3 Years)16.4%
Cash/Debt$161.2 million / $0
CompetitorsIntel (NAS: INTC)
SanDisk (NAS: SNDK)
Micron Technology (NAS: MU)

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

On CAPS, 92% of the 763 members who have rated STEC believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 20% of our community, and SreeRama.

Earlier this month, Anders tapped STEC as a timely bargain pick: "We have a double-dip buying opportunity in front of us here, after two consecutive quarters of reticent short-term guidance but an intact long-term growth story."

STEC even boasts roughly $160 million in cash on its balance sheet with zero debt. Meanwhile, competitors Intel, SanDisk, and Micron sport debt-to-equity ratios of 16%, 24%, and 20%, respectively.

CAPS member SreeRama elaborates on the bull case:

Faster, Cheaper, Quieter and more (yes, reliable too) ... is the needs of data storage today. STEC with their multiple decades of storage related experience and proven (time and field tested) technology platform is a leader/key-player in this growing industry segment. They will do well even as an independent company; however, they are more likely to be acquired by a larger player sooner or later.

What do you think about STEC, 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 trackSTEC?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 Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position on Intel. 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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