Why 8x8 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, VoIP business phone service specialist 8x8 has earned a respected four-star ranking.

With that in mind, let's take a closer look at 8x8 and see what CAPS investors are saying about the stock right now.

8x8 facts

Headquarters (founded)

Sunnyvale, Calif. (1987)

Market Cap

$507.1 million

Industry

Alternative carriers

Trailing-12-Month Revenue

$103.2 million

Management

Chairman/CEO Bryan Martin

CFO Daniel Weirich

Return on Capital (average, past 3 years)

13.6%

Cash/Debt

$46.5 million / $0

Competitors

AT&T

Verizon Communications

Vonage


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

On CAPS, 96% of the 339 members who have rated 8x8 believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, All-Star DrGoldin, tapped the stock as a particularly timely bargain opportunity:

As I've said in a pitch or two before, this is a growth company priced like a value trap. [Friday's] sell-off only makes it that much more attractive. 8x8 is going to see double-digit growth every year until one day it's finally taken over by some Goliath. Cha-ching.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, 8x8 may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." 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.

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The article Why 8x8 Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. 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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