4-Star Stocks Poised to Pop: NXP Semiconductors

Before you go, we thought you'd like these...
Before you go close icon

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

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

NXP facts

Headquarters (Founded)Eindhoven, Netherlands (2006)
Market Cap$4.61 billion
IndustrySemiconductors
Trailing-12-Month Revenue$4.4 billion
Management

CEO Richard Clemmer (since 2009)

CFO Karl-Henrik Sundstrom (since 2008)

Return on Equity (Average, Past 3 Years)(50.7%)
Cash/Debt$859 million / $4.71 billion
Competitors

Analog Devices (NYS: ADI)

STMicroelectronics (NYS: STM)

Texas Instruments (NYS: TXN)

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

On CAPS, 98% of the 351 members who have rated NXP believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 20% of our community, and cafbchief.

Late last month, Anders tapped the stock as an ideal way to get exposed to Near Field Communication (NFC) technology: "I believe that NXP is a crucial player in the NFC hypergrowth story with the technical chutzpah to match, while VirnetX is a speculative gamble without substance. I just rated one as a long-term outperformer in our CAPS system, and the other got a big, red thumb pointing down."

Currently, NXP even sports a cheapish forward P/E of 8.5 . That represents a discount to rivals like Analog Devices (13.6), STMicro (10.7), and Texas Instruments (12.9).

CAPS member cafbchief elaborates on the NXP bull case:

People around the world are very much into their smartphones and tablets -- they're barely able to have the devices out of reach or turned off. NFC will make those devices the new wallet/purse, providing each individual with almost instantaneous electronic access to personal identification verification and payment authorization for commercial, private, and government transactions. NXPI's inroads into this technology place it at the cutting edge of a massive movement into totally electronic data and fund transfers. ... Getting in now will be like riding the same kind of wave Cisco made when it surged to some very high peaks. Looking forward to the ride.

What do you think about NXP, 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 NXP?Add it to your watchlist.

At the time this article was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of NXP and Cisco. The Fool owns shares of Texas Instruments and Cisco. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners