Why Intel 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, computer chip giant Intel has earned a coveted five-star ranking.

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

Intelfacts

Headquarters (founded)

Santa Clara, Calif. (1968)

Market Cap

$105.7 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$53.3 billion

Management

CEO Paul Otellini (since 2005)

CFO Stacy Smith (since 2007)

Return on Equity (average, past 3 years)

25%

Cash/Debt

$18.2 billion/$13.6 billion

Dividend Yield

4.2%

Competitors

AMD

Samsung Electronics

Texas Instruments


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

On CAPS, 98% of the 9,989 members who have rated Intel believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, CardinalRam, succinctly summed up the bull case case for our community:

[Intel] is just beginning to see the impact of the ATOM processor and it will get better over time. I still think this is a 12+ month play. I also think that UltraBook will be successful over the 1-2 year time frame. Then there is the server market -- there is little competition to who powers the "cloud." They probably won't return to double digit growth, but as undervalued as [Intel] is today and with a [4+% dividend yield], I don't see how they can't outperform.

In fact, when it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

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

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

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Intel. 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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