Why Cirrus Is Poised to Bounce Back

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio chip specialist Cirrus Logic has earned a coveted five-star ranking.

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

Cirrus facts

Headquarters (founded)

Austin, Texas (1984)

Market Cap

$1.5 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$713.5 million

Management

CEO Dr. Jason Rhode (since 2007)

CFO Thurman Case (since 2007)

Return on Equity (average, past 3 years)

39.6%

Cash/Debt

$148.2 million / $0

Competitors

Freescale Semiconductor

STMicroelectronics

Texas Instruments


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

On CAPS, 97%of the 878 members who have rated Cirrus believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, whoodatstockhot, tapped the stock as a particularly attractive bargain opportunity:

Sometimes the market is completely irrational which presents buying opportunities. [Cirrus] integrated circuits for audio and energy markets are leading the industry, and demand continues to grow with mobile. Only because one of its customers happens to be the 2nd largest company in the world (and best in breed itself) [Cirrus] shares have been crushed. This short-term fad to sell Apple related stocks is coming to an end, and [Cirrus] on a valuation basis looks like an extremely good value. Expect some major upside for [Cirrus] in coming months.

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

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The article Why Cirrus Is Poised to Bounce Back originally appeared on Fool.com.

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