Why TESSCO 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, wireless communications company TESSCO Technologies (NASDAQ: TESS  ) has earned a coveted five-star ranking.

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

TESSCO facts

Headquarters (founded)

Hunt Valley, Md. (1982)

Market Cap

$254.6 million

Industry

Communications equipment

Trailing-12-Month Revenue

$704.3 million

Management

Founder/Chairman/CEO Robert Barnhill

Senior Vice President of Performance Systems and Operations Douglas Rein

Return on Equity (average, past 3 years)

17.2%

Cash / Debt

$377.7 thousand / $11.8 million

Dividend Yield

2.3%

Competitors

Ingram Micro

Tech Data

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

Earlier this week, CAPS member TMFTailwind succinctly summed up the TESSCO bull case for our community:

This wireless networking equipment distributor and wireless broadband system "architect" is a play on the proliferation of wireless devices. As broadband and wireless providers race to improve their infrastructure to meet rocketing data demand, TESS benefits. The company is led by Founder/Chairman/CEO/President Richard Barnhill, who has significant skin in the game, owning over 20% of shares. Management is incentivized to increase EPS and has done so consistently over the last few years. A ~11x forward P/E multiple for a company in a strong demand environment with solid growth prospects looks like an attractive opportunity.

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