Why OpenText Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, enterprise software specialist OpenText has earned a respected four-star ranking.

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

OpenText facts

Headquarters (founded)

Waterloo, Canada (1991)

Market Cap

$4.1 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$1.3 billion

Management

Chairman/Chief Strategy Officer Thomas Jenkins

President/CEO Mark Barrenechea

Return on Equity (average, past 3 years)

12.8%

Cash/Debt

$446.9 million / $573.5 million

Dividend Yield

1.7%

Competitors

EMC

IBM

Oracle


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

On CAPS, 90% of the 216 members who have rated OpenText believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, acknotts01, succinctly summed up the OpenText bull case for our community:

Diversified revenue streams, check. Complementing service with major competitors, check. Strong management, check. Growth Industry, check. New dividend, check. Organic growth & high renewal rates, check. New products, check.

CEO Mark Barrenechea: "A few select highlights from the quarter. Record cash flows and dividend program; expected annual adjusted margins at the upper end of our fiscal '13 target model range; 13% year-over-year organic license growth and expected second half-over-second half license growth; and EIM strategy and financial model are working."

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, OpenText may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

The article Why OpenText Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Open Text. The Motley Fool owns shares of EMC, International Business Machines, Open Text, and Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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