5-Star Stocks Poised to Pop: j2 Global

Recs

10

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business communications service provider j2 Global Communications (Nasdaq: JCOM) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at j2 Global's business, and see what CAPS investors are saying about the stock right now.

j2 Global facts

Headquarters (founded)

Los Angeles, California (1995)

Market Cap

$818.5 million

Industry

Internet and Software Services

TTM Revenue

$237.7 million

Management

CEO Nehemia Zucker

Co-Founder/Director John Rieley

Return on Equity (average, last three years)

24.7%

Competitors

Premiere Global Services (NYSE: PGI)

CAPS members bullish on JCOM also bullish on:

Apple (Nasdaq: AAPL)

Middleby (Nasdaq: MIDD)

CAPS members bearish on JCOM also bearish on:

Starbucks (Nasdaq: SBUX)

Macy's (NYSE: M)

Whole Foods Market (Nasdaq: WFMI)

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

Over on CAPS, 372 of the 389 members who have rated j2 Global -- or 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include normtrader and CAPS All-Star FoolSolo, who is ranked in the top 20% of our community.

Late last month, normtrader communicated this simple bull case: "Niche palyer in fax and communications. Well amnaged and positioned for growth if markets do not tank further."

In a pitch from one week later, FoolSolo followed that bullish line of thinking:

J2 caught my eye a while back on a value and growth screen, but I was sure the demand for their services would dwindle in the economic situation. However, I think this is a mistake on my part, I think more and more companies and individuals are likely to give up their expensive offices and move into the home office and use services from J2 to maintain their communications channels with the world.

J2's fundamental and financial picture looks quite good for today's credit climate. Their P/E is still a little higher than I would like at 13, but considering their growth rate and their cash position it shouldn't be a problem.

What do you think about j2 Global, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple, Starbucks, and Whole Foods are Motley Fool Stock Advisor picks. Starbucks is also a choice of Inside Value, and the Fool owns shares of it. Middleby is a Motley Fool Hidden Gems recommendation. The Fool's disclosure policy always gets a perfect score.

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 February 13, 2009, at 2:53 PM, matcha695 wrote:

    Yes, yes.....even more five star stocks just ready to pop...lol...just keep writing this stuff.

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Related Tickers

11/9/2009 4:00 PM
JCOM $22.10 Up +0.28 +1.28%
j2 Global Communic… CAPS Rating: ****
MIDD $46.18 Up +1.84 +4.15%
The Middleby Corp CAPS Rating: ****
WFMI $28.52 Up +0.27 +0.96%
Whole Foods Market… CAPS Rating: **
M $19.48 Up +0.30 +1.56%
Macy's, Inc. CAPS Rating: *
SBUX $21.10 Down -0.02 -0.09%
Starbucks Corp CAPS Rating: **
AAPL $201.46 Up +7.12 +3.66%
Apple, Inc. CAPS Rating: ***
PGI $8.00 Up +0.24 +3.09%
Premiere Global Se… CAPS Rating: ***

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