Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track records of the companies behind them -- so individuals can make better investing decisions.
In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 135,000 members, many of whom demonstrate better investing insight than published analysts do.
In CAPS, Sonus Networks (Nasdaq: SONS) has seen more and more top-performing members come to the bullish side of the stock; enough to pull it all the way from a lowly two-star rank at the start of the year to a brief stay at five stars a few weeks back. A total of 289 members have given their opinion on Sonus Networks, with many of them offering analysis and commentary explaining the recent optimism.
Sonus Networks broke the chain of consecutive quarterly losses by recently surprising Wall Street with second-quarter net income of $4.4 million. The restructuring it began in late 2008 led to lower costs in the quarter and revenue grew sequentially by 50%. The company announced that after a final round of layoffs in the third quarter, the restructuring will be complete, bringing annual cost savings as a result. Its client list includes AT&T (NYSE: T), Level 3 (Nasdaq: LVLT), and Verizon (NYSE: VZ), and it recently grew its customer base with new customer wins in the U.S. and Asia.
The company competes with global telecom heavyweights like Alcatel-Lucent (NYSE: ALU), Cisco Systems (Nasdaq: CSCO), and the fallen Nortel Networks. Ericcson recently outbid the Nokia (NYSE: NOK) Siemens partnership to purchase Nortel's wireless assets and some investors believe Nortel's VoIP assets could be an attractive fit for Sonus, though the company hasn't mentioned any official interest. Nonetheless, it's boosted its cash balance in recent quarters and has no long-term debt, which could help it take advantage of opportunities in the North American market and abroad.
Do you think Sonus Networks deserves its vaunted status? If so, add your own thoughts in the comment box below, or head on over to CAPS to rate it yourself. While you're at it, see what the very best CAPS analysts are saying now about the company.
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