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5-Star Stocks Poised to Pop: optionsXpress

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:03PM

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Market-trouncing returns could be written in this five-star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online options-trading brokerage optionsXpress (NASDAQ:OXPS) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

optionsXpress facts

Headquarters (founded)

Chicago, Illinois (2000)

Market Cap

$709.78 million

Industry

Investment brokerage

TTM Revenue

$258.1 million

Management

CEO David Fisher (since 2007)
CFO Adam DeWitt (since 2007)

Return on Equity (average last three years)

44%

Dividend Yield

2.7%

Competitors

E*Trade Financial (NASDAQ:ETFC)
TD AMERITRADE (NASDAQ:AMTD)

CAPS members bullish on OXPS also bullish on

Apple (NASDAQ:AAPL)
Garmin (NASDAQ:GRMN)

CAPS members bearish on OXPS also bearish on

General Motors (NYSE:GM)
Google (NASDAQ:GOOG)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 1,153 of the 1,188 members who have rated optionsXpress -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include garp4u and saunafool.

Last month, garp4u noted that optionsXpress "still has a relatively small market cap, so it has room to grow. No debt, decent cash per share, low p/e ratio under 10, and great corporate efficiency."

In a pitch later on in the month, saunafool agreed, ensuring that our community knows all of their options:

What investors might take from this catastrophic financial event is that you shouldn't invest without insurance. Options, properly used, can provide the insurance. By making options accessible to the investing public, [optionsXpress] might just be a new emerging [Charles Schwab] of the brokerage world. If they survive, they win huge.

What do you think about optionsXpress, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. optionsXpress, Apple, and Charles Schwab are Motley Fool Stock Advisor selections. optionsXpress and Garmin are also picks of Motley Fool Hidden Gems Pay Dirt and Global Gains, respectively. Google is a Rule Breakers recommendation. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

optionsXpress Holdings, Inc. Stock Quote
optionsXpress Holdings, Inc.
OXPS.DL
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$116.63 (-0.57%) $0.67
Apple Inc. Stock Quote
Apple Inc.
AAPL
$164.92 (0.03%) $0.05
General Motors Company Stock Quote
General Motors Company
GM
$36.62 (-2.50%) $0.94
E*TRADE Financial Corporation Stock Quote
E*TRADE Financial Corporation
ETFC
TD Ameritrade Holding Corporation Stock Quote
TD Ameritrade Holding Corporation
AMTD
Garmin Ltd. Stock Quote
Garmin Ltd.
GRMN
$95.12 (-3.48%) $-3.43

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

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