Why VMware Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, server virtualization specialist VMware (NYSE: VMW  ) has earned a respected four-star ranking.

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

VMware facts

Headquarters (founded)

Palo Alto, Calif. (1998)

Market Cap

$30.2 billion

Industry

Systems software

Trailing-12-Month Revenue

$4.7 billion

Management

CEO Patrick Gelsinger (since 2012)

COO Carl Eschenbach (since 2012)

Return on Equity (average, past 3 years)

14%

Cash/Debt

$4.9 billion / $450.0 million

Competitors

Citrix Systems

Microsoft

Amazon.com

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

On CAPS, 92% of the 2,338 members who have rated VMware believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, AaronSmothers, tapped VMware as a particularly healthy opportunity:

With the full initiation of Obama's health care plan the medical world is scrabbling. The virtualization industry stands to profit. Also, enterprise level virtualization may provide a great cost cutting economies of scale option to mid to large companies.

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

After all, it's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.


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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 22, 2013, at 1:28 PM, cruzn59 wrote:

    Yesterday, Fool had a post that VMW was crap, today Fool says they are a good stock. Which is it? Now you can say you were right when they report. What a joke.

  • Report this Comment On July 22, 2013, at 4:20 PM, rsinj wrote:

    Exactly cruzn59. What I've learned is that these days, TMF is only concerned with the quantity of articles produced. The quality or how many authors write about a company, the views they present, and anything else is not considered prior to publishing.

    The information which is important is actually not even what the article says, but the last paragraph with the disclosure "The Motley Fool recommends Amazon.com and VMware. The Motley Fool owns shares of Amazon.com, Microsoft, and VMware".

    So, "TMF" view is that VMW is a buy because they own it - likely from much higher prices.

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