Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, patent-risk management specialist RPX (NAS: RPXC) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at RPX's business and see what CAPS investors are saying about the stock right now.
San Francisco (2008)
Research and consulting services
Co-Founder/CEO John Amster
Trailing-12-Month Return on Equity
Acacia Research (NAS: ACTG)
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 99% of the 128 members who have rated RPX believe the stock will outperform the S&P 500 going forward.
RPX is a fast growing company in a niche industry: patent defense. The company provides a subscription-based patent risk management solution that facilitates more efficient exchanges of value between owners and users of patents compared to transactions driven by actual or threatened litigation.
The company's fundamentals are outstanding, which is surprising for such a young company (founded in 2008 and went public in May of 2011). ...
I also believe that RPX is developing somewhat of a competitive advantage or "economic moat." RPX's business model has a "network effect," because as the company adds new clients it generates new subscription fees that can be used to fund additional acquisitions of patent assets. These acquisitions enable RPX to add new clients and to deliver greater value to the company's existing clients. ...
Overall, I believe RPX is an outstanding business with lots of growth potential and currently selling (trading) at a very low valuation. Those who are patient will be greatly rewarded by investing in this stock.
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The article 5-Star Growth Stocks Poised to Pop: RPX originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.