Why OpenText 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, enterprise software specialist OpenText (NASDAQ: OTEX  ) has earned a respected four-star ranking.

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

OpenText facts

Headquarters (founded)

Waterloo, Canada (1991)

Market Cap

$4.1 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$1.3 billion

Management

Chairman/Chief Strategy Officer Thomas Jenkins

President/CEO Mark Barrenechea

Return on Equity (average, past 3 years)

12.8%

Cash/Debt

$446.9 million / $573.5 million

Dividend Yield

1.7%

Competitors

EMC

IBM

Oracle

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

On CAPS, 90% of the 216 members who have rated OpenText believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, acknotts01, succinctly summed up the OpenText bull case for our community:

Diversified revenue streams, check. Complementing service with major competitors, check. Strong management, check. Growth Industry, check. New dividend, check. Organic growth & high renewal rates, check. New products, check.

CEO Mark Barrenechea: "A few select highlights from the quarter. Record cash flows and dividend program; expected annual adjusted margins at the upper end of our fiscal '13 target model range; 13% year-over-year organic license growth and expected second half-over-second half license growth; and EIM strategy and financial model are working."

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

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.


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