5-Star Growth Stocks Poised to Pop: RPX

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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, patent-risk management specialist RPX (NAS: RPXC) has earned a coveted five-star ranking.

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

RPX facts

Headquarters (founded)

 San Francisco (2008)

Market Cap

$492.8 million

Industry

Research and consulting services

Trailing-12-Month Revenue

$179.9 million

Management

Co-Founder/CEO John Amster
Co-Founder/Director Geoffrey Barker

Trailing-12-Month Return on Equity

12.4%

Cash/Debt

$219.9 million/$0

Competitors

Acacia Research (NAS: ACTG)
Jones Day

Walker Digital


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

On CAPS, 99% of the 128 members who have rated RPX believe the stock will outperform the S&P 500 going forward.

This past summer, one of those Fools, All-Star BuffettJunior1, succinctly summed up the RPX bull case for our community:

RPX is a fast growing company in a niche industry: patent defense. The company provides a subscription-based patent risk management solution that facilitates more efficient exchanges of value between owners and users of patents compared to transactions driven by actual or threatened litigation.

The company's fundamentals are outstanding, which is surprising for such a young company (founded in 2008 and went public in May of 2011). ...

I also believe that RPX is developing somewhat of a competitive advantage or "economic moat." RPX's business model has a "network effect," because as the company adds new clients it generates new subscription fees that can be used to fund additional acquisitions of patent assets. These acquisitions enable RPX to add new clients and to deliver greater value to the company's existing clients. ...


Overall, I believe RPX is an outstanding business with lots of growth potential and currently selling (trading) at a very low valuation. Those who are patient will be greatly rewarded by investing in this stock.

If you want market-topping 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 five-star rating, RPX may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

The article 5-Star Growth Stocks Poised to Pop: RPX originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.

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