Why EchoStar Is Poised to Keep Popping

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 19, 2013 at 4:13PM
Technology and Telecom

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, set-top boxes and satellite services specialist EchoStar (NASDAQ:SATS) has earned a respected four-star ranking.

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

EchoStar facts

Headquarters (founded)

Englewood, Colo. (2007)

Market Cap

$3.4 billion

Industry

Communications equipment

Trailing-12-Month Revenue

$3.2 billion

Management

Chairman Charles Ergen

CEO Michael Dugan

Return on Equity (average, past 3 years)

4.1%

Cash / Debt

$1.6 billion / $2.5 billion

Competitors

Cisco Systems

Gilat Satellite Networks

Time Warner Cable

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

On CAPS, 96% of the 161 members who have rated EchoStar believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star iniesta13, succinctly summed up the EchoStar bull case for our community:

- mid teen 2014 [free cash flow] yield 
-new Ka-band satellite transformational for consumer broadband business; this market is still under-penetrated
-also buying a smart management headed by Charlie Ergen

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