Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, storage and networking chip specialist LSI
With that in mind, let's take a closer look at LSI's business and see what CAPS investors are saying about the stock right now.
LSI facts
Headquarters (Founded) | Milpitas, Calif. (1980) |
Market Cap | $3.67 billion |
Industry | Semiconductors |
Trailing-12-Month Revenue | $2.54 billion |
Management |
CEO Abhijit Talwalkar (since 2005) CFO Bryon Look (since 2000) |
Return on Capital (Average, Past 3 Years) | 0.3% |
Cash/Debt | $600.9 million / $0 |
Competitors |
Texas Instruments
Marvell Technology
EMC |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 88.5% of the 461 members who have rated LSI believe the stock will outperform the S&P 500 going forward. These bulls include danalexky and fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 3% of our community.
Just last month, danalexky touched on several of LSI's positives: "These guys are into fast storage; FAST and competent, have a good reputation, an excellent market, and it will only get better. P/E is high, but they still have a lot of room to grow as cloud computing takes off."
LSI's exposure to the highly attractive storage and networking end markets continue to support its four-star CAPS status. Although LSI isn't nearly as profitable as gorilla chip foes Texas Instruments, Marvell, and Broadcom
CAPS All-Star TMFZahrim sums up the sentiment:
LSI is tightly bound to the health of the networking and storage markets and I'm not convinced that the company can steal share from the competition in any meaningful way. However, you could certainly pick worse industries in which to be stuck and LSI should continue to track the returns of these substantial growth opportunities for the long haul.
What do you think about LSI, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!