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5-Star Stocks Poised to Pop: Ceragon Networks

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Israeli wireless backhaul equipment maker Ceragon Networks (Nasdaq: CRNT  ) has earned a coveted five-star ranking.

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

Ceragon facts

Headquarters (founded)

Tel Aviv, Israel (1996)

Market Cap

$261 million

Industry

Communications Equipment

TTM Revenue

$214 million

Management

President/CEO Ira Palti

CFO Naftali Idan

Compound Annual Revenue Growth (over last five years)

40.7%

Cash/Debt

$76.3 million/$0

Competitors

Alcatel-Lucent (NYSE: ALU  )

Nokia (NYSE: NOK  )

CAPS members bullish on CRNT also bullish on:

Apple (Nasdaq: AAPL  )

Nuance Communications (Nasdaq: NUAN  )

CAPS members bearish on CRNT also bearish on:

Citigroup (NYSE: C  )

Ford Motor (NYSE: F  )

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

Over on CAPS, 443 of the 446 All-Star members who have rated Ceragon -- some 99% -- believe the stock will outperform the S&P 500 going forward. These bulls include SarahGen and TMFPlatoish, both of whom are ranked in the top 2% of our community.

On Monday, SarahGen kindly (and succinctly) summed up Ceragon's recent quarter: "[T]hey missed on revenue and [earnings per share], but yet the stock is up? It's about the future -- looks better."

In a pitch from late last month, TMFPlatoish helps communicate those prospects:

Ceragon is sitting pretty I think. They make radio systems for wireless backhaul of communications traffic. In places with significant wired infrastructure (fiber and TDM leased line), wireless backhaul is an economical adjunct to facilitate cell splitting and to add additional unplanned capacity necessitated by the explosion of data traffic as smart phones become ubiquitous. ...

Management to shareholder communication is above average for a foreign company and management doesn't shirk from describing problems/issues facing the business. ...

Ceragon is a risky small fish in a big pond. It does have good technology, has continued to grow and operate profitably through the recession, and has plenty of cash and no debt.

What do you think about Ceragon, 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. Ceragon and Nuance are Motley Fool Hidden Gems picks. Nokia is an Inside Value recommendation, while Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 3:59 PM
CRNT $8.42 Down -0.04 -0.47%
Ceragon Networks L… CAPS Rating: *****
F $10.60 Up +0.01 +0.09%
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NOK $2.82 Up +0.08 +2.92%
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