4-Star Stocks Poised to Pop: BMC Software

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business software maker BMC Software (NAS: BMC) has earned a respected four-star ranking.

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

BMC facts

Headquarters (founded)

Houston (1980)

Market Cap

$7.2 billion

Industry

Systems software

Trailing-12-Month Revenue

$2.2 billion

Management

Chairman/CEO Robert Beauchamp
CFO Stephen Solcher

Return on Equity (average, past 3 years)

29.7%

Cash/Debt

$1.6 billion / $843.8 million

Competitors


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

On CAPS, 94% of the 330 members who have rated BMC believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, CoreAndExplore, succinctly summed up the bull case for our community:

Now THIS is how you can profit from the cloud computing transition. BMC is a company with serious competitive advantages and an established "moat" with sticky customer relationships and real pricing power. Earnings growth will be in the 12-20% range for years. At [current valuation] you're definitely far better off with BMC than say [salesforce.com] or Netsuite. Definite strong BUY on this stock.

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 a strong four-star rating, BMC may not be your top choice.

One exceptional stock dominating the headlines lately is Apple, and its recent sell off is causing some to scratch their heads. If you're looking for our best analysts' opinion on whether to buy Apple, make sure to check our premium report on the company. If Apple isn't your cup of tea, we've found another tech 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 newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of salesforce.com, BMC Software, and International Business Machines. The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of NetSuite, salesforce.com, and Apple; creating a bull call spread position in Apple; and creating a bear put spread position in salesforce.com. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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