Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Wi-Fi router maker NETGEAR (Nasdaq: NTGR ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at NETGEAR's business and see what CAPS investors are saying about the stock right now.
NETGEAR facts
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Headquarters (Founded)
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Santa Clara, Calif. (1996)
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Market Cap
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$562.52 million
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Industry
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Communications Equipment
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TTM Revenue
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$792.56 million
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Management
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CEO Patrick Lo (since March 2002)
CFO Christine Gorjanc (since January 2008)
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Return on Equity (average last three years)
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14.2%
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Major Competitors
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Cisco Systems (Nasdaq: CSCO )
Hewlett-Packard (NYSE: HPQ )
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CAPS members bullish on NTGR also bullish on
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Dolby Laboratories (NYSE: DLB )
Copart (Nasdaq: CPRT )
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CAPS members bearish on NTGR also bearish on
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Lehman Brothers (NYSE: LEH )
Washington Mutual (NYSE: WM )
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 486 of the 495 All-Star members who have rated NETGEAR -- or 98% -- believe the stock will outperform the S&P 500. These All-Star bulls include 4Foolz and tenmiles, both of whom are ranked in the top 15% of our community.
In May, 4Foolz wrote that NETGEAR is a "Great growth company going thru growing pains. 50% haircut is a nice entry point. Over $5 per share in CASH! Low P/E. What's not to like?"
In a pitch made one month earlier, tenmiles shared that contrarian spirit, stressing the stock's attractive long-term prospects:
Strong value metrics on this one ... Weakness in Europe will likely continue, as will cost pressures from US competitors struggling to stay in the game. Netgear is a survivor, but there is some historical seasonality to their business. Combined with the current macroeconomic climate, likely slow- to- dead money near term, but expect it will emerge [from] this cycle as a market beater over the next few years.
What do you think about NETGEAR, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.
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