Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, optical networking equipment supplier Finisar
With that in mind, let's take a closer look at Finisar's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Sunnyvale, Calif. (1987)|
|Market Cap||$1.96 billion|
|Trailing-12-Month Revenue||$900.3 million|
CEO Eitan Gertel (since 2008)
CFO Kurt Adzema (since 2003)
|Return on Capital (Average, Past 3 Years)||4%|
|Cash/Debt||$310.23 million / $57.85 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 470 members who have rated Finisar believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Anders Bylund (TMFZahrim) and TSIF, both of whom are ranked in the top 5% of our community.
Late last year, Anders helped bring the growth opportunity to our community's attention: "This component maker is an important cog in the optical networking industry's complicated machinery. There's a ton of growing left to do here, and Finisar's stock isn't even expensive."
Over the next five years, in fact, Finisar is expected to grow its bottom line at a solid rate of 20% annually. That's faster than direct competitors Avago (12.5%), JDS Uniphase (14.7%), and Opnext (14%).
A nearly 40% one day punishment of Finisar Corp was about as ridiculous as its 3X six month triple. Guiding down for any company has been excessively brutal of late. ... As a supplier of Fiber, Finisar has participated in the 40% rise in sales as the overall network bandwidth continues to expand in an attempt to absorb the new high tech gadgets everyone has to have. The slowdown was expected by some, but is a little sooner than many expected. The question is whether the slowdown in build out is temporary and how much excess inventory is sitting in the channels that will need to be absorbed. ... Reasonable risk/reward.
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