Why Silicon Motion 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, semiconductor company Silicon Motion Technology has earned a coveted five-star ranking.

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

Silicon Motion facts

Headquarters

Jhubei City, Taiwan

Market Cap

$486.1 million

Industry

Semiconductors

Trailing-12-Month Revenue

$281.4 million

Management

Founder/CEO Chia-Chang Kou

CFO Riyadh Lai

Return on Equity (average, past 3 years)

13%

Cash/Debt

$169.6 million/$0

Competitors

Advanced Micro Devices

NVIDIA


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

On CAPS, 98% of the 798 members who have rated Silicon Motion believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, hend6, helped bring the Silicon Motion opportunity to our community's attention:

A strong balance sheet in an ever-demanding tech industry leaves them more free than the giants to jump to new waves. Certainly a volatile market, so I'll reevaluate after a year. A recent offering of a small dividend helps a little as well.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Silicon Motion 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 Silicon Motion Is Poised to Outperform originally appeared on Fool.com.

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