5-Star Stocks Poised to Pop: Brightpoint

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless solutions specialist Brightpoint (NAS: CELL) has earned a coveted five-star ranking.

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

Brightpoint facts

Headquarters (Founded)

Indianapolis (1989)

Market Cap

$645.2 million

Industry

Technology distributors

Trailing-12-Month Revenue

$4.81 billion

Management

Founder/Chairman/CEO Robert Laikin
CFO Vincent Donargo

Return on Capital (Average, Past 3 Years)

9.6%

Cash/Debt

$25.8 million / $172.3 million

Competitors

Ingram Micro (NYS: IM)
TESSCO Technologies (NAS: TESS)
Euronet Worldwide (NAS: EEFT)

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

On CAPS, 97% of the 330 members who have rated Brightpoint believe the stock will outperform the S&P 500 going forward. These bulls include All-Star EnigmaDude, who is ranked in the top 5% of our community, and LenProfits.

Earlier this year, EnigmaDude touched on the tailwinds working in Brightpoint's favor: "[A]nother one to benefit from the smart phone/wireless app revolution."

Over the past five years, in fact, Brightpoint has grown its top line at a solid rate of 15% annually. That's faster than that of competitors Ingram Micro (4%), TESSCO (8%), and Euronet (13%).

CAPS member LenProfits elaborates on the bull case:

Theirs is technology driving smart phone sales and now ... tablets coming forth. There's room for a number of competing companies but as more come on board, none appear poised to force [Brightpoint] to unwind any time soon. What with smartphones being the current rage, replacing earlier more simplified phones with far fewer applications available, the time has come for the general population to take the plunge and commit to somewhat more expensive yet fulfilling devices offering greatly advanced technologies. This must enhance [Brightpoint's] earnings potential.

What do you think about Brightpoint, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackBrightpoint?Add it to your watchlist.

At the time thisarticle was published 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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