5-Star Stocks Poised to Pop: Iridium

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, satellite phone company Iridium Communications (Nasdaq: IRDM  ) has earned a coveted five-star ranking.

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

Iridium facts

Headquarters (Founded)

McLean, Va. (2000)

Market Cap

$552 million

Industry

Alternative carriers

Trailing-12-Month Revenue

$369.7 million

Management

CEO Matthew Desch (since 2006)

CFO Thomas Fitzpatrick (since 2010)

Trailing-12-Month Return on Equity

6.2%

Cash/Debt

$103.8 million / $265.3 million

Competitors

Globalstar

RRsat Global Communications

ViaSat

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

On CAPS, 98% of the 178 members who have rated Iridium believe the stock will outperform the S&P 500 going forward. These bulls include hbrown19 and MYPIX.

Earlier this year, hbrown19 touched on tailwinds working in Iridium's favor: "With wireless communication busting at the seams, and the current tired infrastructure in need of some serious help, these guys are poised to be ready when the market demands more."

Over the next five years, in fact, Iridium is expected to grow its bottom line at a brisk rate of 17.5% annually. That's much faster than more traditional telecom plays like AT&T (NYSE: T  ) (3.8%), Sprint (NYSE: S  ) (0.9%), and Verizon Communications (NYSE: VZ  ) (8.7%).

CAPS member MYPIX elaborates on the growth opportunity:

Eventually, the world of mobile communication is going to have to go through a big change. There just isn't enough room on the spectrum to fit everyone who needs to talk. When they revamp this whole system, [satellite communication] is going to replace the towers, at least in some parts. ... [Satellite communication] would be great if they could get the technology together. No dropped calls, no areas without service. IRDM is currently working on an Internet service via satellite. I've worked with their products before and they are very reliable. ... Currently priced below book value, this is unmerited given the growth possibilities for this company.

What do you think about Iridium, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Iridium? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Iridium. Motley Fool newsletter services have recommended buying shares of AT&T. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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