Why Kulicke & Soffa Is Poised to Outperform

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 Kulicke & Soffa Industries has earned a coveted five-star ranking.

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

Kulicke & Soffa facts

Headquarters (founded)

Singapore (1951)

Market Cap

$926.9 million

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$791.0 million

Management

CEO Bruno Guilmart (since 2010)

CFO Jonathan Chou (since 2010)

Return on Equity (average, past 3 years)

39.5%

Cash/Debt

$440.2 million / $0

Competitors

ASM Pacific Technology

BE Semiconductor Industries

SHINKAWA


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

On CAPS, 96% of the 333 members who have rated Kulicke & Soffa believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, FoolSolo, tapped the stock as a particularly attractive bargain opportunity:

I just don't get why [Kulicke & Soffa] is so cheap. The fundamentals are very compelling; P/E 5.75 ... Zero Debt, while they are maintaining a gross margin of 46.5%. And despite these numbers they are currently trading at $12.30. ... For such a healthy and fundamentally strong company, especially in this tech recession, these guys look like a great value, and hopefully not a value trap.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a sure-fire way to secure your financial future. Of course, despite its five-star rating, Kulicke & Soffa may not be your top choice.

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The article Why Kulicke & Soffa Is Poised to Outperform originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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