Why PC Connection Is Poised to Outperform

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

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 1, 2013 at 10:55AM
Technology and Telecom

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, direct IT products marketer PC Connection (NASDAQ:CNXN) earned a coveted five-star ranking.

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

PC Connection facts

Headquarters (founded)

Merrimack, N.H. (1982)

Market Cap

$327.4 million


Technology distributors

Trailing-12-Month Revenue

$2.2 billion


CEO Timothy McGrath (since 2011)

CFO Joseph Driscoll (since 2012)

Return on Equity (average, past 3 years)



$39.9 million / $1.0 million




Insight Enterprises

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

On CAPS, 86% of the 132 members who have rated PC Connection believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, hend6, offered a cautiously bullish take on PC Connection:

Income is a little low, but improving, with net profit as a percentage of sales in the upper [1%] range. Balance sheet is very strong though, with relatively good liquidity and the ability to pay all of their debt with current assets. Technology intermediaries should have room to grow as markets continually expand. No dividend though and treasury stock signals some internal uncertainty. Will reevaluate in a year.

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