5-Star Stocks Poised to Pop: Applied Materials

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip equipment maker Applied Materials (NAS: AMAT) has earned a coveted five-star ranking.

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

Applied Materials facts

Headquarters (founded)

Santa Clara, Calif. (1967)

Market Cap

$14.6 billion

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$10.0 billion

Management

Chairman/CEO Michael Splinter
CFO George Davis

Return on Equity (average, past 3 years)

11.9%

Cash/Debt

$2.0 billion / $2.0 billion

Dividend Yield

3.2%

Competitors

KLA-Tencor
Lam Research
Tokyo Electron


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

On CAPS, 95% of the 2,104 members who have rated Applied Materials believe the stock will outperform the S&P 500 going forward.

Just a couple of days ago , one of those Fools, chicagoadvisor, succinctly summed up the bull case for our community:

Solid balance sheet, exposure to flat panel, solar panel and semi conductor space with growing share of mobile tech. Dividend pays [to] wait, the value here should weather a storm (when the next one comes). The [Varian Semiconductor] acquisition is causing some indigestion. I like, I'm buying.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Applied Materials may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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