A Big Upgrade for OmniVision Technologies

Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track record of the firm behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 110,000 investors, many of whom demonstrate better investing insight than published analysts do.

Enough top-performing CAPS investors have turned bullish on OmniVision Technologies (Nasdaq: OVTI  ) recently to upgrade it from its long-held four-star rank to five stars, the highest possible. With 581 investors giving an opinion on OmniVision, there's plenty of analysis and commentary explaining the recent optimism.

Despite an increase in gross margins to 27.2% in its most recent quarter, OmniVision's $9.1 million in net income wasn't enough for Wall Street, and investors have sent the stock down more than 30% in the past six weeks. But many investors find the lower-priced shares an even better reason to buy -- OmniVision's TrueFocus technology already has the potential to stand out and take market share from competitors such as Texas Instruments (NYSE: TXN  ) and Micron (NYSE: MU  ) . And now, with an earnings multiple of only around 9.7, OmniVision's stock is on the radar of many value investors.

By optimizing a new generation of image sensor for Qualcomm (Nasdaq: QCOM  ) chipsets used in mobile phones, the company has already landed a major design win with a leading smartphone maker. And with digital cameras almost a standard feature on all new products from leading phone makers such as Nokia (NYSE: NOK  ) , Samsung, and Motorola (NYSE: MOT  ) , there's plenty of growth opportunity for OmniVision. The company is confident that its technical edge will help it stay ahead of much larger competitors, and CAPS investors largely agree, with 94% of those rating the firm expecting it to outperform the market.

To see what the very best CAPS analysts are saying now about OmniVision -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.

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Fool contributor Dave Mock recently upgraded his ride with fuzzy dice. He owns shares of Motorola and Qualcomm and is the author of The Qualcomm Equation. The Fool's disclosure policy never kisses on the first date.

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12/31/1969 7:00 PM
OVTI.DL $0.00 Down +0.00 +0.00%
OmniVision Technol… CAPS Rating: *****
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