Why Infinera Is Poised to Outperform

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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, optical networking company Infinera has earned a coveted five-star ranking.

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

Infinera facts

Headquarters (founded)

Sunnyvale, Calif. (2000)

Market Cap

$1.2 billion

Industry

Communications Equipment

Trailing-12-Month Revenue

$503.3 million

Management

CEO Thomas Fallon

Co-Founder/President David Welch

Return on Equity (average, past 3 years)

(16.6%)

Cash / Debt

$301.7 million / $105.6 million

Competitors


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

On CAPS, 98% of the 1,851 members who have rated Infinera believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, OceanJackson, succinctly summed up the bull case for our community:

The new Telco cycle is upon us. 100g, optical, OTN, convergence, meshed architectures, massive bandwidth demand increases, a simplification and cost reduction of Network Infrastructure, while at the same time, making networks much more powerful, and intelligent. That's what spending is going toward, right now, and Infinera is beautifully positioned to meet these needs with the leading optical gear and PIC's.

They are the market leader in 100g optical. They have won industry wide acclaim for their technology. Fundamentals are currently strong, and strengthening over the last 3 quarters. ... Stronger financials than immediate competitors [Alcatel] & [Ciena]. ...

Simply stated, with Infinera we have a thoroughbred champion racehorse, that only a major macro level economic disaster that takes down the recovering economy, and plunges us back into a deep recession or depression, can stop.

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The article Why Infinera Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and Infinera. The Motley Fool owns shares of Infinera. 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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