4-Star Stocks Poised to Pop: Riverbed Technology
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, WAN acceleration specialist Riverbed Technology (NAS: RVBD) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Riverbed's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Francisco (2002)|
|Market Cap||$3.7 billion|
|Trailing-12-Month Revenue||$647.1 million|
|Management||Co-Founder/Chairman/CEO Jerry Kennelly|
CFO Randy Gottfried
|Return on Equity (Average, Past 3 Years)||5.7%|
|Cash/Debt||$536.8 million / $0|
|Competitors||Cisco Systems (NAS: CSCO) |
F5 Networks (NAS: FFIV)
Juniper Networks (NYS: JNPR)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last month, Harryjack summed up the Riverbed bull case: "This is the 'Apple' in the web WAN optimization -- they have the leading products, have signed great customers, and have a huge upside market as companies standardize on their product to secure corporate networks and optimize their capacity. Their customers have given high marks for service and support."
Over the next five years, in fact, Riverbed is expected to grow its bottom line at a brisk rate of 31% annually. That's much faster than listed rivals Cisco (9%), F5 (23%), and Juniper (17%).
CAPS member macheu02 expands on the outperform argument:
This stock is suffering from a market reaction not a fundamental devaluation. RVBD has no long term debt and cash on hand to cover its short term obligations. I expect the stock to slowly climb back as the panic settles. [I]f it makes its estimates for next quarter the stock should jump back by the end of the year.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Riverbed, Cisco, and Apple, as well as writing puts in Riverbed. The Fool owns shares of and has created a bull call spread position on both Cisco and Apple. 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.