4-Star Stocks Poised to Pop: Marvell Technology

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip maker Marvell Technology (NAS: MRVL) has earned a respected four-star ranking.

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

Marvell facts

Headquarters (Founded)Hamilton, Bermuda (1995)
Market Cap$7.72 billion
IndustrySemiconductors
Trailing-12-Month Revenue$3.56 billion
Management

Co-Founder/Chairman/CEO Dr. Sehat Sutardja

Co-Founder/Chief Technology Officer Dr. Pantas Sutardja

Return on Equity (Average, Past 3 Years)11.3%
Cash/Debt$2.4 billion / $0
Competitors

LSI

STMicroelectronics

Texas Instruments (NYS: TXN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,438 members who have rated Marvell believe the stock will outperform the S&P 500 going forward. These bulls include All-Star traviskang, who is ranked in the top 1% of all CAPS members, and kylehusky.

Earlier this week, traviskang brought Marvell's cheapish multiples to our community's attention:

Good earnings and solid fundamentals. Value pick given its expanding products lines, as well as top/bottom line earnings growth.

Forward P/E 7.75
PEG 0.62
P/S 2.16
P/B 1.57

Over the next five years, Marvell is even expected to grow its bottom line at a solid rate of 15.4% annually. That's faster than other semiconductor plays like AMD (NYS: AMD) (10.8%), Intel (NAS: INTC) (11.1%), and Texas Instruments (11%).

CAPS member kylehusky elaborates on the bull case:

MRVL the stock has been just crushed of late... It's a big supplier into Research In Motion. With the horrid quarter and collapse in demand for RIMM's products, MRVL's been crushed on the very valid concerns that all of RIMM's problems will trickle down... But while that concern is quite valid, we're only talking about an impact of probably about $50 million to $100 million in the worst case scenario. Kinect alone will more than make up for the RIMM impact this year and especially next year.

What do you think about Marvell, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Marvell?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Marvell, Intel, and Texas Instruments, and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Intel. 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 Fool's disclosure policy always gets a perfect score.

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