Please ensure Javascript is enabled for purposes of website accessibility

5-Star Stocks Poised to Pop: VASCO Data Security

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, security software specialist VASCO Data Security (NASDAQ:VDSI) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

VASCO facts

Headquarters (founded)

Oakbrook Terrace, Ill. (1996)

Market Cap

$356.5 million

Industry

Security software and services

TTM Revenue

$135.2 million

Management

CEO T. Kendall Hunt (since 2002)
COO Jan Valcke (since 2002)

Return on Equity (average last three years)

37.4%

Competitors

Aladdin Knowledge Systems (NASDAQ:ALDN)
ActivIdentity (NASDAQ:ACTI)

CAPS members bullish on VDSI also bullish on

Apple (NASDAQ:AAPL)
Google (NASDAQ:GOOG)

CAPS members bearish on VDSI also bearish on

Wachovia (NYSE:WB)
Ford Motor (NYSE:F)

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

Over on CAPS, fully 2,149 of the 2,198 members who have rated VASCO -- some 98% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include All-Star rivasray and TheShadowFox.

Late last month, rivasray noted that all of the stock's signs pointed higher:

Valuation. Fundamentals. Solid earnings this stock must go up.

In an earlier pitch from October, TheShadowFox shares that bullishness, highlighting VASCO's secure position in security:

VASCO's management is fully invested in the company. Its DigiPass product is constantly being upgraded and new international locations are being opened. Since it is so highly correlated with the financial sector (most of its customers are banks) its stock has taken a beating. Look for VASCO to become a leading preferred provider of data security.

What do you think about VASCO, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. VASCO and Apple are Motley Fool Stock Advisor picks. ActivIdentity is a Hidden Gems Pay Dirt selection. Google is a choice of Rule Breakers. The Fool's disclosure policy always gets a perfect score.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

VASCO Data Security International, Inc. Stock Quote
VASCO Data Security International, Inc.
OSPN
$12.30 (2.33%) $0.28
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$119.55 (-1.77%) $-2.15
Apple Inc. Stock Quote
Apple Inc.
AAPL
$174.55 (0.88%) $1.52
Ford Motor Company Stock Quote
Ford Motor Company
F
$16.03 (-2.44%) $0.40
Aladdin Knowledge Systems Ltd. Stock Quote
Aladdin Knowledge Systems Ltd.
ALDN

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.