After the Pop: Is Cirrus Logic Still a Buy?


The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss topics across the investing world.

Cirrus Logic has been on a furious run so far in 2012. Year to date, the company has seen a surge of 66%, leaving the returns of the red-hot Nasdaq in the dust. However, Cirrus Logic now trades at a P/E north of 20, which is a healthy premium to the semiconductor industry and a high level for a company that sees 63% of sales from its largest customer, Apple. Eric has recommended investors buy Cirrus Logic on several occasions, but with the company now double his initial buy recommendation, he dives into whether investors should buy more Cirrus or look for better opportunities.

If you're one of the thousands of investors riding Apple and its suppliers to spectacular gains, you're doing yourself a disservice by not looking into the variety of companies benefiting from the same trends that are making Apple the most valuable company in the world. The Motley Fool has just released a free report on mobile called "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.

At the time thisarticle was published Eric Bleekerowns shares of Cirrus Logic. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Cirrus Logic.Motley Fool newsletter services recommendApple and Nuance Communications. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.