Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, server virtualization specialist VMware (NYS: VMW) has earned a respected four-star ranking.
With that in mind, let's take a closer look at VMware's business and see what CAPS investors are saying about the stock right now.
Palo Alto, Calif. (1998)
Incoming CEO Pat Gelsinger
Return on Equity (average, past 3 years)
$5.4 billion / $450.0 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 2,309 members who have rated VMware believe the stock will outperform the S&P 500 going forward.
VMware margins appear solid. Their moat broad. ... EMC continues to buy shares of VMware, indicating either they feel it's undervalued or that they have plans. ... 20% [operating margins], minimal debt, $5 billion in the bank, new products, "cloud" maker, substantial cash flow. ... P/E could be scary, (the old me), forward P/E of 26 is not excessive.
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Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.
The article 4-Star Stocks Poised to Pop: VMware originally appeared on Fool.com.
Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft, EMC, Amazon.com, and VMware.Motley Fool newsletter serviceshave recommended buying shares of VMware, Amazon.com, and Microsoft.Motley Fool newsletter serviceshave also recommended creating a synthetic covered call position in Microsoft. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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