Why CA Tech Is Poised to Outperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, IT management software specialist CA Technologies has earned a coveted five-star ranking.
With that in mind, let's take a closer look at CA and see what CAPS investors are saying about the stock right now.
CA facts
Headquarters (founded) | Islandia, N.Y. (1974) |
Market Cap | $11.5 billion |
Industry | Systems software |
Trailing-12-Month Revenue | $4.7 billion |
Management | CEO Michael Gregoire (since January 2013) CFO Richard Beckert (since May 2011) |
Return on Equity (average, past 3 years) | 15.6% |
Cash/Debt | $2.6 billion / $1.4 billion |
Dividend Yield | 4% |
Competitors | Hewlett-Packard IBM Oracle |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 78% of the 302 members who have rated CA believe the stock will outperform the S&P 500 going forward.
On Monday, one of those Fools, tlindeman, succinctly summed up CA bull case for our community:
This company has consistently paid out dividends, while maintaining a payout ratio below the magical 65%. In addition, they have invested heavily in Capex which is a sign that they are gearing toward more growth. Finally, there is a new CEO which is typically a negative, however, in this case, he has extensive experience in the industry.
If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its perfect five-star rating, CA 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 CA Tech Is Poised to Outperform originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of International Business Machines and Oracle. 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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