Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, data storage specialist Xyratex (NASDAQ:XRTX) has earned a respected four-star ranking.

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

Xyratex facts

Headquarters (founded)

Havant, U.K. (1966)

Market Cap

$291.6 million


Computer storage and peripherals

Trailing-12-Month Revenue

$1.1 billion


Interim CEO Ernest Sampias

CFO Richard Pearce

Return on Equity (average, past 3 years)



$92.8 million / $0

Dividend Yield



Dot Hill Systems



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

On CAPS, 93% of the 274 members who have rated Xyratex believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, All-Star Staka, offered a balanced take on the Xyratex opportunity:

-Fundamentally cheap with much higher earnings potential, no debt, good dividend
-Activist investor will drive profitability, brings in a new CEO, even selling the company seems possible
-New ClusterStor family should drive future growth even if current core business is deflating

-Weakness in core business limits the available time frame for the entrance into the new cluster storage business   

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of EMC. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.