4-Star Stocks Poised to Pop: VMware

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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, server virtualization specialist VMware (NYS: VMW) has earned a respected four-star ranking.

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

VMware facts

Headquarters (founded)

Palo Alto, Calif. (1998)

Market Cap

$40.3 billion

Industry

Systems software

Trailing-12-Month Revenue

$4.2 billion

Management

Incoming CEO Pat Gelsinger
COO/Interim CFO Carl Eschenbach

Return on Equity (average, past 3 years)

13%

Cash/Debt

$5.4 billion / $450.0 million

Competitors

Citrix Systems
Microsoft
Amazon.com

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

On CAPS, 92% of the 2,309 members who have rated VMware believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star TSIF, succinctly summed up the VMware bull case for our community:

VMware margins appear solid. Their moat broad. ... EMC continues to buy shares of VMware, indicating either they feel it's undervalued or that they have plans. ... 20% [operating margins], minimal debt, $5 billion in the bank, new products, "cloud" maker, substantial cash flow. ... P/E could be scary, (the old me), forward P/E of 26 is not excessive.

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 a strong four-star rating, VMware may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

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

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft, EMC, Amazon.com, and VMware.Motley Fool newsletter serviceshave recommended buying shares of VMware, Amazon.com, and Microsoft.Motley Fool newsletter serviceshave also recommended creating a synthetic covered call position in Microsoft. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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