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14

4-Star Stocks Poised to Pop: GeoEye

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, satellite imagery company GeoEye (Nasdaq: GEOY  ) has earned a respected four-star ranking.

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

GeoEye facts

Headquarters (founded)

Dulles, Va. (1991)

Market Cap

$406.6 million

Industry

Diversified communication services

Trailing-12-Month Revenue

$156 million

Management

CEO  Matthew O'Connell (since 2001)
CFO Steven Balthazor (since 2008)

Compound Annual Revenue Growth (over last five years)

74.9%

Competitors

DigitalGlobe (NYSE: DGI  )

CAPS members bullish on GEOY also bullish on

Apple (Nasdaq: AAPL  )
General Electric (NYSE: GE  )
Johnson & Johnson (NYSE: JNJ  )

CAPS members bearish on GEOY also bearish on

Yamana Gold (NYSE: AUY  )
Cephalon (Nasdaq: CEPH  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, 167 of the 170 All-Star members who have rated GeoEye -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars TMFBreakerTAllan and Capsperson, both of whom are ranked in the top 5% of our community.

In April, TMFBreakerTAllan brought the stock's positive image to our community's attention:

GeoEye now has the best satellite imagery available to buy. From a profitable contract with the US Government and the ability to sell imagery to entities from oil companies to insurance companies to Google, this company is set to grow revenue and the bottom line. Add to this a lack of competition and high costs to compete, GeoEye is a relatively low risk growth company.

In a pitch from one month later, Capsperson lists even more reasons to keep an eye on GeoEye:

The potential uses for GeoEye's imagery and imagery services are endless. Beyond basic intelligence gathering for the U.S. Govt, their product is used by foreign governments and commercial businesses. These uses include vessel tracking, infrastructure planning, environmental, agricultural, space exploration, humanitarian, oil and gas drilling, mining, mapping and weather monitoring.

The business is very capital intensive and subject to very strict NSA requirements. But the likelihood of the U.S. Govt (or other governments) to internalize this information gathering is probably minimal.

What do you think about GeoEye, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. GeoEye and Google are Motley Fool Rule Breakers recommendations, Apple is a Stock Advisor pick, and Johnson & Johnson is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/14/2012 3:47 PM
GEOY $22.07 Down -0.44 -1.96%
GeoEye CAPS Rating: ****
GE $18.91 Down -0.16 -0.84%
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CEPH $0.00 Down +0.00 +0.00%
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AAPL $509.42 Up +6.82 +1.36%
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AUY $16.08 Down -0.17 -1.05%
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