Why PC Connection 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, direct IT products marketer PC Connection earned a coveted five-star ranking.

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

PC Connection facts

Headquarters (founded)

Merrimack, N.H. (1982)

Market Cap

$327.4 million

Industry

Technology distributors

Trailing-12-Month Revenue

$2.2 billion

Management

CEO Timothy McGrath (since 2011)

CFO Joseph Driscoll (since 2012)

Return on Equity (average, past 3 years)

10.6%

Cash/Debt

$39.9 million / $1.0 million

Competitors

CDW

Dell

Insight Enterprises


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

On CAPS, 86%of the 132 members who have rated PC Connection believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, hend6, offered a cautiously bullish take on PC Connection:

Income is a little low, but improving, with net profit as a percentage of sales in the upper [1%] range. Balance sheet is very strong though, with relatively good liquidity and the ability to pay all of their debt with current assets. Technology intermediaries should have room to grow as markets continually expand. No dividend though and treasury stock signals some internal uncertainty. Will reevaluate in a year.

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

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The article Why PC Connection 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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