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.
Santa Clara, Calif. (1995)
Co-Founder/Chairman/CEO Shaw Hong
CFO Anson Chan
Return on Equity (Average, Past 3 Years)
$507.1 million / $50 million
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].
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