4-Star Stocks Poised to Pop: Calix

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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, telecom equipment maker Calix (NYS: CALX) has earned a respected four-star ranking.

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

Calix facts

Founded (founded)Petaluma, Calif. (1999)
Market Cap$226.9 million
IndustryCommunication equipment
Trailing-12-Month Revenue$351.8 million
ManagementCEO Carl Russo (since 2002)
CFO Michael Ashby (since 2011)
Trailing-12-Month Return on Equity(13%)
Cash/Debt$49.6 million / $0
CompetitorsAlcatel-Lucent
Ericsson
Huawei Technologies

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

On CAPS, 93% of the 82 members who have rated Calix believe the stock will outperform the S&P 500 going forward.  

Earlier this week, one of those Fools, All-Star TSIF, tapped the stock's recent plunge as a speculative value opportunity:

They have not been profitable in three years but revenue is up [year-over-year] over 15% each of the last three years, meaning they are in the painful stage of growing expenses to capture market share.

The news that customers are lowering spending comes at a time when the markets are already unsettled. This usually accelerates sell-offs. This is most likely a swing trade unless Calix improves metrics in the next quarter or so. [Price-to-sales] is sub 1 and it's now near book value. All cash, no debt, reasonable cash flow despite quarterly losses. Could be a long term growth story, but highly risky.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, Calix may not be your top choice.

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The article 4-Star Stocks Poised to Pop: Calix originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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