Why Allot Communications Is Ready to Rebound

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Allot Communications , which develops products to optimize over-the-top Internet traffic for fixed and mobile networks, has earned a respected four-star ranking.

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

Allot facts

Headquarters (founded)

Hod-Hasharon, Israel (1996)

Market Cap

$451.4 million

Industry

Systems software

Trailing-12-Month Revenue

$104.8 million

Management

CEO Rami Hadar (since 2006)

CFO Nachum Falek (since 2010)

Return on Equity (average, past 3 years)

(1.9%)

Cash/Debt

$143.1 million / $0

Competitors

Cisco Systems

F5 Networks

Procera Networks


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

On CAPS, 93% of the 767 members who have rated Allot believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, fellow Fool Rich Duprey (TMFCop), succinctly summed up the outperform case for our community:

I think Allot is losing out to Procera in many instances, but as the lead contender for [Verizon's] DPI business as it unveils its "6 strikes" policy and the possibility it is preparing itself to be acquired -- it announced it was repaying its Israeli OCS R&D grants back early (the loans prevent a sale of the company to foreign investors) -- I see its new, lower price attractive.

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

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The article Why Allot Communications Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and F5 Networks. The Motley Fool owns shares of F5 Networks. 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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