Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, communications company NeuStar
With that in mind, let's take a closer look at NeuStar's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Sterling, Va. (1996)|
|Market Cap||$1.93 billion|
|Industry||Data processing and outsourced services|
|Trailing-12-Month Revenue||$522.72 million|
CEO Lisa Hook (since October 2010)
CFO Paul Lalljie (since June 2006)
|Return on Equity (Average, Past 3 Years)||15.2%|
|Cash/Debt||$377.55 million / $13.6 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 259 members who have rated NeuStar believe the stock will outperform the S&P 500 going forward. These bulls include Clint35 and All-Star FoolSolo, who is ranked in the top 15% of our community.
Late last week, Clint35 described NeuStar in purely bullish terms: "Small money minting company with huge potential."
Fools remain attracted to NeuStar's monopoly-like profitability. Thanks to its status as the largest provider of clearinghouse services to the telecom industry, NeuStar's three-year average operating margin (36.7%) easily tops that of gorilla consultants in the space like Accenture (12.4%), Hewlett-Packard (9.6%), IBM (11%), and Computer Sciences
CAPS All-Star FoolSolo elaborates on the bull case:
[L]ooking at their fundamentals I am very impressed with their value and growth. They have about $378M in cash, very minimal debt, and great cash flow over $50M per quarter. Virtually all the growth and earnings indicators on my screen are lit up, so I have no reservations calling this a growth company, with good value and low risk to reward ratio. I will build a position in this company.
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