Why Procera Networks Is Ready to Rebound

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

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 11, 2013 at 3:14PM
Technology and Telecom

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Procera Networks (UNKNOWN:PKT.DL) has earned a coveted five-star ranking. The company provides deep packet inspection technology that enables mobile companies to manage private networks.

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

Procera facts

Headquarters (founded)

Fremont, Calif. (2002)

Market Cap

$324.2 million

Industry

Communications equipment

Trailing-12-Month Revenue

$58.7 million

Management

CEO James Brear (since 2008)

CFO Charles Constanti (since 2009)

Return on Equity (average, past 3 years)

(2.6%)

Cash/Debt

$133.0 million / $0

Competitors

Allot Communications

Cisco Systems

Juniper Networks

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

On CAPS, 95% of the 96 members who have rated Procera believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, fellow Fool Rich Duprey (TMFCop), succinctly summed up the outperform case for our community:

The Deep Packet Inspection (DPI) market will be a $2 billion business in 2 years and Procera will be a leader in both the enterprise market that is its specialty and among ISPs. While [Allot] is seen as the leader for [Verizon's] DPI business, [Procera] could win [AT&T's].

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