5-Star Stocks Poised to Pop: OmniVision Technologies
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, semiconductor image-sensor device specialist OmniVision Technologies (NAS: OVTI) has earned a top five-star ranking.
With that in mind, let's take a closer look at OmniVision's business and see what CAPS investors are saying about the stock right now.
OmniVision facts
Headquarters (Founded) | Santa Clara, Calif. (1995) |
Market Cap | $1.08 billion |
Industry | Semiconductors |
Trailing-12-Month Revenue | $1.04 billion |
Management | Co-Founder/Chairman/CEO Shaw Hong CFO Anson Chan |
Return on Equity (Average, Past 3 Years) | 5.7% |
Cash/Debt | $507.1 million / $50 million |
Competitors | Avago Technologies (NAS: AVGO) Micron Technology (NAS: MU) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 797 members who have rated OmniVision believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars tenmiles and EnigmaDude, both of whom are ranked in the top 2% of our community.
Late last month, tenmiles tapped OmniVision's recent pullback as a tempting opportunity: "Sell-off makes 'sensor' given Apple's [ (NAS: AAPL) ] likely dual outsourcing, but 30% haircut ... places back in fair value range."
In fact, OmniVision currently sports a cheapish PEG ratio of 0.5. That represents a clear discount to listed rivals like Avago (1.1) and Micron (2.0).
CAPS All-Star EnigmaDude elaborates on the bargain opportunity:
Earnings more than doubled for the July period, but the company predicted earnings to come in the range of 52-64 cents a share with revenue between $255 million and $275 million for the current period. OK, so if they "only" earn $0.50 in Q3 that would give them a forward P/E of about 6 or so. It's not like they are going to file for [bankruptcy].
What do you think about OmniVision, 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!
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At the time thisarticle was published 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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