Why TESSCO Is Poised to Outperform

Updated
Why TESSCO 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, wireless communications company TESSCO Technologies has earned a coveted five-star ranking.

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

TESSCO facts

Headquarters (founded)

Hunt Valley, Md. (1982)

Market Cap

$254.6 million

Industry

Communications equipment

Trailing-12-Month Revenue

$704.3 million

Management

Founder/Chairman/CEO Robert Barnhill

Senior Vice President of Performance Systems and Operations Douglas Rein

Return on Equity (average, past 3 years)

17.2%

Cash / Debt

$377.7 thousand / $11.8 million

Dividend Yield

2.3%

Competitors


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

Earlier this week, CAPS member TMFTailwind succinctly summed up the TESSCO bull case for our community:

This wireless networking equipment distributor and wireless broadband system "architect" is a play on the proliferation of wireless devices. As broadband and wireless providers race to improve their infrastructure to meet rocketing data demand, TESS benefits. The company is led by Founder/Chairman/CEO/President Richard Barnhill, who has significant skin in the game, owning over 20% of shares. Management is incentivized to increase EPS and has done so consistently over the last few years. A ~11x forward P/E multiple for a company in a strong demand environment with solid growth prospects looks like an attractive opportunity.

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The article Why TESSCO 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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