Why Dolby 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, audio technology specialist Dolby Laboratories has earned a coveted five-star ranking.

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

Dolby facts

Headquarters (founded)

San Francisco (1965)

Market Cap

$3.3 billion

Industry

Electronic components

Trailing-12-Month Revenue

$926.3 million

Management

CEO Kevin Yeaman (since 2009)

CFO Lewis Chew (since 2012)

Return on Equity (average, past 3 years)

17.9%

Cash/Debt

$795.3 million / $0

Competitors

DTS

SRS Labs

THX


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

On CAPS, 97% of the 4,028 members who have rated Dolby believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, hend6, succinctly summed up the Dolby bull case for our community:

A very strong balance sheet with a pretty good income statement. Their technologies are everywhere, and presumably they will keep trying to innovate and keep a presence in as many places as possible. May not be terrific for growth, but should stay strong and have no problems maintaining.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Dolby may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

The article Why Dolby Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Dolby Laboratories. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement