Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, trading firm Knight Capital Group (NYSE: KCG ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Knight's business and see what CAPS investors are saying about the stock right now.
Knight facts
| Headquarters (founded) |
Jersey City, N.J. (1995) |
| Market Cap |
$1.34 billion |
| Industry |
Investment banking and brokerage |
| Trailing-12-Month Revenue |
$1.12 billion |
| Management |
Chairman/CEO Thomas Joyce
CFO Steven Bisgay
|
| Return on Equity (average, past 3 years) |
13.6% |
| Competitors |
Goldman Sachs (NYSE: GS )
LaBranche (NYSE: LAB )
NYSE Euronext (NYSE: NYX )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 346 members who have rated Knight believe the stock will outperform the S&P 500 going forward. These bulls include 21popsontop and BearInMind.
Late last year, 21popsontop summed up the Knight bull case with just a few simple words: "Expanding and growing rapidly."
Over the next five years, in fact, Knight is even expected to grow its bottom line at a faster pace (14%) than listed rivals Goldman (12%), NYSE Euronext (11%), and Nasdaq OMX (Nasdaq: NDAQ ) (10%), as well as other brokerage plays like Raymond James (NYSE: RJF ) (12%) and Investment Technology Group (NYSE: ITG ) (11%).
CAPS member BearInMind elaborates on the opportunity:
GREAT growth potential at a BIG discount. Why? Low trailing trading volumes which will affect the short term stock price moves, and uncertainty over financial reform. Company is diversifying away from equity execution roots, but still in a high competition industry. Additionally [Knight] is also a surprisingly defensive stock. If markets tank both volatility and trading volumes are going to ensure [Knight] makes [money]. And most importantly ... who doesn't love their Barons ads.
What do you think about Knight, 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!
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