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4-Star Stocks Poised to Pop: SGI

By Brian D. Pacampara, CFA - Updated Apr 6, 2017 at 10:08PM

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Market-trouncing returns could be written in these four stars.

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, high performance computing specialist Silicon Graphics International (Nasdaq: SGI) has earned a respected four-star ranking.

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

SGI facts

Headquarters (Founded) Fremont, Calif. (1999)
Market Cap $554.3 million
Industry Computer hardware
Trailing-12-Month Revenue $499.88 million
Management

CEO Mark Barrenechea (since 2007)

CFO James Wheat (since 2008)

Trailing-12-Month Return on Equity (36%)
Cash/Debt $100.94 million / $0
Competitors

Dell (Nasdaq: DELL)

IBM (NYSE: IBM)

Oracle (Nasdaq: ORCL)

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

On CAPS, 93% of the 275 members who have rated SGI believe the stock will outperform the S&P 500 going forward. These bulls include 82882 and JPAKolypse86.

Just last month, 82882 touched on SGI's steadily growing product and CAPS appeal: "I believe it has turned the corner and the 'All stars' seem to like it."

Currently, SGI even boasts $100 million in cash on its balance sheet with zero debt. Meanwhile, much larger listed rivals Dell, IBM, and Oracle sport debt-to-equity ratios of 0.8, 1.2, and 0.4, respectively.

CAPS member JPAKolypse86 elaborates on the opportunity:

Cloud computing is fast becoming a hot business with companies like Amazon staking a claim in the industry. The recession put SGI in a slump but SGI is now in a more enviable position than they were 3 years ago.... I would venture to say that SGI will soon be a $30 stock again

What do you think SGI, 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!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

International Business Machines Corporation Stock Quote
International Business Machines Corporation
IBM
$116.90 (-0.02%) $0.02
Dell Technologies Inc. Stock Quote
Dell Technologies Inc.
DELL.DL
Oracle Corporation Stock Quote
Oracle Corporation
ORCL
$89.99 (0.27%) $0.24

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

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