Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, optical networking company Infinera (INFN -0.38%) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Infinera and see what CAPS investors are saying about the stock right now.
Infinera facts
Headquarters (founded) |
Sunnyvale, Calif. (2000) |
Market Cap |
$1.2 billion |
Industry |
Communications Equipment |
Trailing-12-Month Revenue |
$503.3 million |
Management |
CEO Thomas Fallon Co-Founder/President David Welch |
Return on Equity (average, past 3 years) |
(16.6%) |
Cash / Debt |
$301.7 million / $105.6 million |
Competitors |
Alcatel-Lucent Cisco Systems Ericsson |
On CAPS, 98% of the 1,851 members who have rated Infinera believe the stock will outperform the S&P 500 going forward.
Earlier this month, one of those Fools, OceanJackson, succinctly summed up the bull case for our community:
The new Telco cycle is upon us. 100g, optical, OTN, convergence, meshed architectures, massive bandwidth demand increases, a simplification and cost reduction of Network Infrastructure, while at the same time, making networks much more powerful, and intelligent. That's what spending is going toward, right now, and Infinera is beautifully positioned to meet these needs with the leading optical gear and PIC's.
They are the market leader in 100g optical. They have won industry wide acclaim for their technology. Fundamentals are currently strong, and strengthening over the last 3 quarters. ... Stronger financials than immediate competitors [Alcatel] & [Ciena]. ...
Simply stated, with Infinera we have a thoroughbred champion racehorse, that only a major macro level economic disaster that takes down the recovering economy, and plunges us back into a deep recession or depression, can stop.