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5-Star Stocks Poised to Pop: Logitech International

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:52PM

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

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Swiss computer accessory company Logitech International (NASDAQ:LOGI) 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 woefully lag the market average.

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

Logitech facts

Headquarters (founded) Apples, Switzerland (1981)

Market Cap

$2.57 billion

Industry

Computer Peripherals

TTM Revenue

$2.52 billion

Management

CEO Gerald Quindlen (since January 2008)

CFO Mark Hawkins (since April 2006)

Return on Equity (average, last three years)

28.5%

Competitors

Microsoft (NASDAQ:MSFT),

Motorola (NYSE:MOT)

CAPS members bullish on LOGI also bullish on:

Apple (NASDAQ:AAPL),

Google (NASDAQ:GOOG)

CAPS members bearish on LOGI also bearish on:

Nokia (NYSE:NOK),

General Electric (NYSE:GE)

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

Over on CAPS, 146 of the 150 All-Star members who have rated Logitech -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include chk999 and dibble905, both of whom are ranked in the top 20% of our community.

In late October, chk999 used some Foolish logic on Logitech: "Looking at the fundamentals, they have no debt. They have some cash. They have good margins and good ROE and ROA. They will weather this downturn and still be a great company."

In a pitch from four days ago, dibble905 agrees, tapping Logitech as a best-of-breed bargain opportunity:

Although the sector is saturated, Logitech maintains enough investment to redefine the standard keyboard and mouse and entice us of their new products ability to make us more efficient or otherwise better at whatever we do -- leisure or work related. ...

The one caveat to all of this is, technology is a growing field where one year is an eternity. One new hot product from a competitor can easily unseat Logitech from its humble throne. As of right now, however, with decreasing capital expenditures and no real competition in sight, Logitech is at least a value buy for the short to medium term of 2-4 years.

What do you think about Logitech, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Microsoft is a Motley Fool Inside Value pick, Apple is a Stock Advisor selection, and Google is a choice of Rule Breakers. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Logitech International SA Stock Quote
Logitech International SA
LOGI
$59.13 (1.97%) $1.14
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$291.91 (1.70%) $4.89
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$121.68 (2.39%) $2.84
Apple Inc. Stock Quote
Apple Inc.
AAPL
$172.10 (2.14%) $3.61
Nokia Corporation Stock Quote
Nokia Corporation
NOK
$5.21 (0.00%) $0.00
General Electric Company Stock Quote
General Electric Company
GE
$79.93 (1.30%) $1.03
Motorola Solutions, Inc. Stock Quote
Motorola Solutions, Inc.
MSI
$255.97 (1.46%) $3.69

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

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