5-Star Stocks Poised to Pop: Infinera

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Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, optical networking company Infinera (Nasdaq: INFN) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Infinera facts

Headquarters (Founded)

Sunnyvale, Calif. (2000)

Market Cap

$751.00 million

Industry

Communication Equipment

TTM Revenue

$437.61 million

Management

Co-Founder/CEO Jagdeep Singh
CFO Duston Williams

TTM Return on Equity

21.5%

Close Competitors

Cisco Systems (Nasdaq: CSCO)
Alcatel-Lucent (NYSE: ALU)

CAPS members bullish on INFN also bullish on

Exelixis (Nasdaq: EXEL)
Cemex (NYSE: CX)

CAPS members bearish on INFN also bearish on

Washington Mutual (NYSE: WM)
Citigroup (NYSE: C)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 212 of the 216 All-Star members who have rated Infinera -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include tomk0508 and Conorlad, both of whom are ranked in the top 15% of our community.

In February, tomk0508 noted that Infinera "is reinventing optical networks with improvements in reliability, flexibility, efficiency and cost. There will be long term demand for their products as the infrastructure is updated and extended."

A more recent pitch by Conorlad in May echoes that bullish sentiment:

Miniaturization and optimization of the computer gave us PCs in every home and business greatily improving our everyday efficiency. Time and again people outpace the capacity of even the newest hardware based on demand through networks already moving toward full capacity at peak hours of operation.

Infinera is focused on optimizing the Optical signals that are forming the core of tomorrows networks. The improvements they make in the OEO conversion components, which they are producing cheaply and well will be a necessary part of all networks.

What do you think about Infinera, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

What do the unfolding financial crisis and ongoing market volatility mean for your money? The Fool's here with answers. Get the best of our daily commentary and analysis in your inbox simply by entering your email address in the box below.

Infinera and Exelixis are Motley Fool Rule Breakers picks. Cemex is a choice of Global Gains and Stock Advisor. The Fool owns shares of Infinera, Exelixis, and Cemex. Try any of our Foolish newsletter services free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Infinera Corp.

CAPS Rating 5/5 Stars

$9.23

+0.08 (+0.87%)

Outperform957

Underperform20

Rate This Stock