5-Star Stocks Poised to Pop: Interactive Intelligence

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, call center software provider Interactive Intelligence (Nasdaq: ININ) 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 Interactive Intelligence's business, and see what CAPS investors are saying about the stock right now.

Interactive Intelligence facts

Headquarters (founded)

Indianapolis, Indiana (1994)

Market Cap

$124.7 million

Industry

Application software

TTM Revenue

$119.4 million

Management

Co-Founder/CEO Dr. Donald Brown
CFO Stephen Head

Return on Capital (average last three years)

16.3%

Competitors

Cisco Systems (Nasdaq: CSCO)
Nortel Networks (NYSE: NT)

CAPS members bullish on ININ also bullish on

Apple (Nasdaq: AAPL)
Suntech Power (NYSE: STP)

CAPS members bearish on ININ also bearish on

Citigroup (NYSE: C),
Google (Nasdaq: GOOG)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 389 of the 408 members who have rated Interactive Intelligence -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include djwhr1 and gallunltd.

Last month, djwhr1 described the stock in glowing bullish terms:

Great small company with very successful products and good service and maintenance revenues. Good cash position with no debt. Management seems competent and focused on longer term performance. Low float.

In a pitch later in the month, gallunltd took a more balanced approach toward Interactive, writing:

This company I like but I worry about the industry. On the plus side: zero debt, positive level of ownership, good margins, and plenty of cash. So what's my problem? I have no idea the time it will take to regain what the economic dark period has taken away. I suppose that is true for all stocks but I don't own all stocks.

What do you think about Interactive Intelligence, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Interactive Intelligence, Suntech, and Google are Motley Fool Rule Breakers picks. Apple is a Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

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