5-Star Stocks Poised to Pop: Ceragon Networks

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Israeli wireless backhaul specialist Ceragon Networks (Nasdaq: CRNT  ) has earned a coveted five-star ranking.

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

Ceragon facts

Headquarters (Founded)	Tel Aviv, Israel (1996)
Market Cap	$418.3 million
Industry	Communications equipment
Trailing-12-Month Revenue	$290.5 million
Management	CEO Ira Palti (since 2005) CFO Tsipi Kagan (since 2010)
Return on Equity (Average, Past 3 Years)	3.6%
Cash/Debt	$71.4 million / $35 million
Competitors	Alcatel-Lucent (NYSE: ALU  ) DragonWave (Nasdaq: DRWI  ) Motorola Solutions (NYSE: MSI  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 1,543 members who have rated Ceragon believe the stock will outperform the S&P 500 going forward. These bulls include spudweather and Prodders.

A few months ago, spudweather tapped Ceragon as a tasty turnaround opportunity: "2011 setback in earnings has depressed stock price, but looks set for tremendous earnings growth in 2012 and 2013. I expect to see prices in the $30's in 2013."

Over the next five years, in fact, Ceragon is expected to grow its bottom line at a brisk rate of 46% annually. That's much faster than rivals Alcatel-Lucent (10%), DragonWave (15%), and Motorola Solutions (11%).

CAPS member Prodders elaborates on the Ceragon bull case:

Really well placed in the 4G build-out. A couple of the recent earnings reports have disappointed a little, the most recent partly due to the Nera acquisition which should be highly accretive longer-term. Once people start looking more at 2012 earnings then you have something like a10-12x [forward] P/E and 30% growth. Definitely a potential double.

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