Why CyrusOne Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, data center operator CyrusOne has earned a coveted five-star ranking.

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

CyrusOnefacts

Headquarters (founded)

Carrollton, Texas (2012)

Market Cap

$438.7 million

Industry

Diversified REIT

Trailing-12-Month Revenue

$210.8 million

Management

CEO Gary Wojtaszek (since 2011)
CFO Kimberly Sheehy (since 2011)

Trailing-12-Month Operating Margin

17.4%

Cash / Debt

$3.2 million / $699.3 million


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

On CAPS, all 11 members who have rated CyrusOne believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TMFDeej, explained why CyrusOne is certainly worth watching:

Yes, CyrusOne appears to be fairly expensive to me. However, it is both a spinoff and a REIT conversion, types of stocks that have significantly outperformed the S&P lately and historically. While the [Benjamin Graham] investor in me wants to value future growth at zero, there's no denying that the data center sector has some major tailwinds behind it right now and likely for some time to come. The special situations combined with a hot sector make this one a CAPS buy. As I mentioned, I think that it's a little rich for real money though. [T]ime will tell.

If you want to retire rich, you need to put together the best portfolio you can. Of course, despite its five-star rating, CyrusOne may not be your top choice.

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The article Why CyrusOne Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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