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4-Star Stocks Poised to Pop: Informatica

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, data integration specialist Informatica (Nasdaq: INFA  ) has earned a respected four-star ranking.

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

Informatica facts

Headquarters (Founded) Redwood City, Calif. (1993)
Market Cap $4.45 billion
Industry Application software
Trailing-12-Month Revenue $720 million
Management

Chairman/CEO Sohaib Abbasi

CFO Earl Fry

Return on Equity (Average, Past 3 Years) 14.9%
Cash/Debt $564.2 million / $0
Competitors

IBM (NYSE: IBM  )

Microsoft (Nasdaq: MSFT  )

Oracle (Nasdaq: ORCL  )

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

On CAPS, 94% of the 252 members who have rated Informatica believe the stock will outperform the S&P 500 going forward. These bulls include mesConfitures and All-Star RedandBlack, who is ranked in the top 2% of our community.

Earlier this summer, mesConfitures touched on Informatica's attractive value proposition: "Before you can do fancy stuff with your data, you have to get all your data talking the same language, which is prohibitively huge & costly project for companies. Automating the process brings it into the reach of the majority of companies not big enough for full SAP or Oracle systems."

Over the next five years, in fact, Informatica is expected to grow its bottom line at a brisk rate of 19.4% annually. That's faster than much larger rivals like IBM (11.8%), Microsoft (9.9%), and Oracle (15.1%).

CAPS All-Star RedandBlack elaborates on the growth opportunity:

Doing the difficult business of extracting data, putting it into a new format, and loading it onto a new home. Most companies use many different types of software for sales, accounting, transportation, etc. INFA works to get all the data so it can be used together and they do it automatically through their software. They are growing strongly and have good profitability. Outperform 5 years.

What do you think about Informatica, 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 Informatica? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Informatica and Microsoft as well as creating a bull call spread position on Microsoft. The Fool owns shares of Microsoft, Oracle, and IBM. 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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