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5-Star Stocks Poised to Pop: LivePerson

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, real-time chat technologist LivePerson (Nasdaq: LPSN  ) has earned a coveted five-star ranking.

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

LivePerson facts

Headquarters (Founded) New York (1995)
Market Cap $600.9 million
Industry Internet software and services
Trailing-12-Month Revenue $120.4 million
Management CEO Robert LoCascio (since 1995)
CFO Daniel Murphy (since 2011)
Return on Equity (Average, Past 3 Years) (2.1%)
Cash/Debt $74.4 million / $0
Competitors Microsoft (Nasdaq: MSFT  )
Oracle (Nasdaq: ORCL  )
Rightnow Technologies (Nasdaq: RNOW  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 466 members who have rated LivePerson believe the stock will outperform the S&P 500 going forward. These bulls include Edstonestreet and paradigms.  

Just last month, Edstonestreet tapped the stock as a great way to go for growth:

LivePerson continue to drive strong revenues from their solid base of 8,500 customers as well as delivering innovation which expands the reach within existing customers as well as across broader markets. A strong performer in the past very well positioned to grow in the coming years.

Over the next five years, in fact, LivePerson is expected to grow its bottom line at a brisk rate of 22.5% annually. That's faster than competitors like Microsoft (9.9%), Oracle (13.6%), and Rightnow (21.4%).

CAPS member paradigms elaborates on the LivePerson bull case:

I often favor value stocks, but I also like growth stocks, so long as I can really understand what the company does and provided it has a sterling balance sheet. Well, LPSN has got both areas covered: it develops software applications for e-commerce so businesses can better interact with their customers (read: increase conversion rates and provide better customer service) and it has a sterling balance sheet. ...

LPSN has both great growth potential without any of the risks that come from being overleveraged early in a company's development.

Like it or not, e-commerce is a growing part of a new shopping paradigm and companies like LPSN are going to be highly sought after because they provide actionable information to online businesses in an increasingly competitive retail landscape.

What do you think about LivePerson, 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 LivePerson? 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 LivePerson, Microsoft, and Oracle, as well as creating a bull call spread position in Microsoft. 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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Related Tickers

5/25/2012 4:00 PM
LPSN $17.03 Up +0.75 +4.61%
LivePerson CAPS Rating: ****
RNOW $43.00 Down +0.00 +0.00%
RightNow Technolog… CAPS Rating: **
ORCL $26.14 Up +0.02 +0.08%
Oracle Corp. CAPS Rating: ****
MSFT $29.06 Down -0.01 -0.03%
Microsoft Corp CAPS Rating: ****

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