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Why CyrusOne Is Poised to Outperform

By Brian D. Pacampara, CFA – Jan 25, 2013 at 9:56AM

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

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, data center operator CyrusOne (CONE) has earned a coveted five-star ranking.

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

CyrusOne facts

Headquarters (founded)

Carrollton, Texas (2012)

Market Cap

$438.7 million 


Diversified REIT

Trailing-12-Month Revenue

$210.8 million


CEO Gary Wojtaszek (since 2011)
CFO Kimberly Sheehy (since 2011)

Trailing-12-Month Operating Margin


Cash / Debt

$3.2 million / $699.3 million

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

On CAPS, all 11 members who have rated CyrusOne believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TMFDeej, explained why CyrusOne is certainly worth watching:

Yes, CyrusOne appears to be fairly expensive to me. However, it is both a spinoff and a REIT conversion, types of stocks that have significantly outperformed the S&P lately and historically. While the [Benjamin Graham] investor in me wants to value future growth at zero, there's no denying that the data center sector has some major tailwinds behind it right now and likely for some time to come. The special situations combined with a hot sector make this one a CAPS buy. As I mentioned, I think that it's a little rich for real money though. [T]ime will tell.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 Motley Fool has a disclosure policy.

Stocks Mentioned

CyrusOne Stock Quote

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

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