Why iGATE 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, outsourcing services specialist iGATE (NASDAQ: IGTE  ) has earned a coveted five-star ranking.

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

iGATE facts

Headquarters (founded)

Fremont, Calif. (1996)

Market Cap

$1.0 billion

Industry

IT consulting and other services

Trailing-12-Month Revenue

$1.1 billion

Management

CEO Phaneesh Murthy (since 2008)

CFO Sujit Sircar (since 2008)

Return on Equity (average, past 3 years)

18.8%

Cash/Debt

$606.0 million / $1.2 billion

Competitors

Cognizant Technology Solutions

Computer Sciences

Infosys

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

On CAPS, 97% of the 205 members who have rated iGATE believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, ScalaAnalyst, succinctly summed up the iGate bull case for our community:

They have 45% insiders as owners so you know these guys will be steering the company into positive directions. When their personal income is affected they tend to keep tabs on where the company is going. This company has earnings/book value ratio that is quite nice which shows how efficient are. Most of the ratios against their book value look good. Their cash flow growth for the last few quarters is getting better. The earnings growth slope is positive so I believe this company will continue to provide stellar earnings in the future. This company has a PEG is 0.54 and a P/E of 15.06 which is slightly higher than all the companies in this industry, but this is to be expected for [an] earnings based growth company.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, iGATE may not be your top choice.

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