Recs

11

5-Star Stocks Poised to Pop: Dolby Labs

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio technology company Dolby Laboratories (NYSE: DLB  ) has earned a coveted five-star ranking.

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

Dolby facts

Headquarters (founded)

San Francisco (1965)

Market Cap

$4.19 billion

Industry

Diversified Electronics

Trailing-12-Month Revenue

$701.8 million

Management

Founder/Chairman Ray Dolby

President/CEO Kevin Yeaman

Return on Equity (average, last three years)

20.9%

Competitors

Sony (NYSE: SNE  )

DTS (Nasdaq: DTSI  )

CAPS Members Bullish on DLB Also Bullish on

Apple (Nasdaq: AAPL  )

Netflix (Nasdaq: NFLX  )

CAPS Members Bearish on DLB Also Bearish on

First Solar (Nasdaq: FSLR  )

Ford Motor (NYSE: F  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 3,079 of the 3,155 members who have rated Dolby -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include SmoothHughes and All-Star ifool100, who is ranked in the top 15% of our community.

In late April, SmoothHughes summed up the stock's sweet-sounding bull case:

Buying the brand, the moat, and the leadership here. Dolby will be a part of the majority of electronic sound delivery in the future and both the number of people and the ways they are listening will continue to see healthy growth. Plus, the company has plenty of cash and [little] debt.

In an earlier pitch, ifool100 helped that sentiment resonate with our community:

Original owner in control. Beautiful cash flow, [little] debt. Check any DVD/BlueRay/CD -- and you'll probably see the Dolby logo. Sound is huge, and 3D is coming on fast. I can't see how any other company can have the position that Dolby has. And during recessions/depressions people love to escape. Movies, music -- all of which Dolby is a part of. Great long-term play.

What do you think about Dolby, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Dolby, Apple, and Netflix are Motley Fool Stock Advisor picks. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

DocumentId: 922807, ~/Articles/ArticleHandler.aspx, 2/14/2012 8:01:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 12,878.28 4.24 0.03%
S&P 500 1,350.50 -1.27 -0.09%
NASD 2,931.83 0.44 0.02%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

2/14/2012 4:01 PM
DLB $37.36 Down -0.24 -0.64%
Dolby Laboratories CAPS Rating: *****
FSLR $39.21 Down -2.51 -6.02%
First Solar CAPS Rating: **
NFLX $123.07 Up +4.77 +4.03%
Netflix CAPS Rating: **
SNE $19.13 Down -0.35 -1.80%
Sony Corp (ADR) CAPS Rating: **
AAPL $509.46 Up +6.86 +1.36%
Apple CAPS Rating: ***
DTSI $28.11 Down -0.61 -2.12%
DTS, Inc. CAPS Rating: **
F $12.48 Down -0.06 -0.48%
Ford CAPS Rating: ****

Advertisement