Why Riverbed Technology 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, network gear maker Riverbed Technology has earned a coveted five-star ranking.

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

Riverbed facts

Headquarters (founded)

San Francisco (2002)

Market Cap

$2.5 billion

Industry

Communications equipment

Trailing-12-Month Revenue

$836.9 million

Management

Co-Founder/Chairman/CEO Jerry Kennelly

CFO Randy Gottfried

Return on Equity (average, past 3 years)

8.2%

Cash/Debt

$451.1 million / $572.1 million

Competitors

Cisco Systems

F5 Networks

Juniper Networks


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

On CAPS, 96% of the 1,045 members who have rated Riverbed believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, NoblyNaive, tapped the stock as a particularly timely bargain opportunity:

[Riverbed] stands to gain in one of two ways: benefiting from WAN demand in 2014; or by direct acquisition from its goliath competitor, [Cisco Systems], which has much more free cash on hand than [Riverbed] is worth. Draconian punishment of RVBD stock price (February 2013) over their own recent acquisition of [Opnet Technologies] to gain WAN advantage (which was necessary to compete with CISCO, but went less than optimally) makes RVBD a good discount buy.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Riverbed may not be your top choice.

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The article Why Riverbed Technology 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, F5 Networks, and Riverbed Technology. The Motley Fool owns shares of F5 Networks and Riverbed Technology. 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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