5-Star Stocks Poised to Pop: Dolby Labs
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio technologist Dolby Laboratories (NYS: DLB) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Dolby's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Francisco (1965)|
|Market Cap||$3.6 billion|
|Trailing-12-Month Revenue||$955.5 million|
|Management||CEO Kevin Yeaman (since 2009)|
CFO Murray Demo (since 2009)
|Return on Equity (Average, Past 3 Years)||19.8%|
|Cash/Debt||$942.8 million / $0|
|Competitors||DTS (NAS: DTSI) |
Sony (NYS: SNE)
SRS Labs (NAS: SRSL)
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 4,080 members who have rated Dolby believe the stock will outperform the S&P 500 going forward. These bulls include All-Star wpfan, who is ranked in the top 15% of our community, and witness1260.
Just last week, wpfan tapped Dolby as a solid bargain opportunity:
Undervalued to begin with at this point. Wise leadership, good products that will find their way into lots of devices. The stock has been damaged MUCH more that the business actually has.
In fact, Dolby sports a cheapish forward P/E of 13.3. That represents a discount to competitors DTS (16.2), Sony (52.3), and SRS Labs (23.9).
CAPS member witness1260 elaborates on the bull case:
I don't think Dolby's going away. They've upped their R&D spending considerably. ... They're working to keep up with changes in technology. ... It's worth pointing out how huge their margins are as well, but I think that comes more out of the fact that most of their revenue is from licensing, which is what's starting to dry up. Still, I don't think Dolby is done and I would expect some catch-up.
What do you think about Dolby, 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 this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Dolby. 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.