4-Star Stocks Poised to Pop: Altera
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, programmable logic chip specialist Altera (NAS: ALTR) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Altera's business and see what CAPS investors are saying about the stock right now.
Altera facts
Headquarters (Founded) | San Jose, Calif. (1983) |
Market Cap | $12.2 billion |
Industry | Semiconductors |
Trailing-12-Month Revenue | $2.16 billion |
Management | Chairman/CEO John Daane CFO Ronald Pasek |
Return on Equity (Average, Past 3 Years) | 35.5% |
Cash/Debt | $3.24 billion / $500 million |
Dividend Yield | 0.9% |
Competitors | Broadcom (NAS: BRCM) Intel (NAS: INTC) Texas Instruments (NYS: TXN) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 368 members who have rated Altera believe the stock will outperform the S&P 500 going forward. These bulls include Etrexer and Gooman64.
This past summer, Etrexer listed several of Altera's positives: "Profitability, industry leadership, market growth, efficiency, and stability -- all these are positive signs coming from ALTR."
In fact, Altera boasts a robust three-year average operating margin of 36.4%. That's higher than that of larger competitors like Broadcom (7.9%), Intel (29.7%), and Texas Instruments (24.8%).
CAPS member Gooman64 offers some firsthand insight into Altera's technology:
Used the FPGA chips designed by Altera while I was in school. They were definitely a bit tricky to code, but boy were they amazing. Lots you can do with these things. In my case, wrote a wonderful blackjack program that outputted to VGA screen. These things if done right, can replace any type of logic chips. Great and fun products.
What do you think about Altera -- 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 trackAltera?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Intel and Texas Instruments. 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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