4-Star Stocks Poised to Pop: Ancestry.com

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online family history resource Ancestry.com (NAS: ACOM) has earned a respected four-star ranking.

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

Ancestry facts

Headquarters (founded)

Provo, Utah (1983)

Market Cap

$943.0 million

Industry

Internet software and services

Trailing-12-Month Revenue

$399.7 million

Management

CEO Timothy Sullivan (since 2005)
CFO Howard Hochhauser (since 2009)

Return on Equity (average, past 3 years)

12.7%

Cash/Debt

$49.0 million / $10.0 million

Competitors

Dalesman Publishing Company
Google
SeniorNet

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

On CAPS, 92% of the 373 members who have rated Ancestry believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, ShawnRobinson, tapped Ancestry as a particularly tempting takeover target:

[S]ignificant drop in the share price will surely begin to attract suitors who could find value in [Ancestry's] assets. Google, for example, could find value in integrating [Ancestry's] genealogy content to boost their information driven business model or the search engine giant could tap the 1.7 million subscribers to integrate with their Google social media offering. Both the content and subscriber base would make sense for the company and would be what is most likely touted to shareholders if the company did acquire [Ancestry].

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. Of course, despite its four-star rating, Ancestry may not be your top choice.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Ancestry.com and Google. The Fool owns shares of Google. 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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