Why Giant Interactive 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, Chinese online gaming company Giant Interactive has earned a respected four-star ranking.

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

Giant Interactivefacts

Headquarters (founded)

Shanghai, China (2004)

Market Cap

$1.5 billion

Industry

Home entertainment software

Trailing-12-Month Revenue

$332.1 million

Management

Chairman/CEO Yu-Zhu Shi

CFO Jazy Zhang

Return on Equity (average, past 3 years)

26.6%

Cash/Debt

$374.1 million/$0

Dividend Yield

4.7%

Competitors

Changyou.com

Perfect World

Shanda Games


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

On CAPS, 96% of the 613 members who have rated Giant Interactive believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, JoeArizona, succinctly summed up the bull case for our community:

With Chinese companies, it's always a crap shoot. But Giant Interactive seems to have a decent portfolio of games, and the Chinese economy doesn't appear to be in danger of cratering. That means lots of online gamers with disposable income looking for something to do online. Giant is going to do well in this environment.

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

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Giant Interactive. 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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