Why Cirrus Logic Is Poised to Bounce Back

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 (NASDAQ: CRUS  ) has earned a respected four-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

$1.9 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$525.8 million

Management

CEO Dr. Jason Rhode (since 2007)

CFO Thurman Case (since 2007)

Return on Equity (average, past 3 years)

36.4%

Cash/Debt

$134.6 million / $0

Competitors

Freescale Semiconductor

STMicroelectronics (NYSE: STM  )

Texas Instruments (NASDAQ: TXN  )

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

On CAPS, 96% of the 718 members who have rated Cirrus believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, vanliew, tapped the stock as a particularly attractive turnaround opportunity:

Cirrus has had a 35%+ pull-back over the last few months. This after beating last qtr's estimates and signaling high expectations for the coming qtr with their words and actions (ie share buy back). They are tied to the hip with Apple (NASDAQ: AAPL  ) and I don't see that as a liability; think iphone5/ipad mini and Christmas/China. Cirrus should come roaring back.

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Read/Post Comments (2) | Recommend This Article (1)

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.

  • Report this Comment On December 13, 2012, at 4:36 PM, aufergy wrote:

    I've been an Apple investor for a couple of years now. Until recently, I really hadn't considered CRUS because it seemed redundant. I started researching CRUS after last quarter's earnings because the earnings were amazing and the stock dropped like a rock.

    I've been reading as many articles as I can on CRUS because the low valuation just makes no sense to me. I figured I was just missing something. The idea that keeps going through my head is Peter Lynch saying that every December creates opportunities because of tax loss selling. This year, that is magnified by the fiscal cliff.

    The margin of safety on CRUS right now is huge. If they come anywhere close to the earnings that are projected (and my guess is they will beat them), this stock is set to soar next year. I've stopped questioning and started buying.

  • Report this Comment On December 16, 2012, at 12:04 PM, bobbyk1 wrote:

    I bought a quarter posistion when it dropped 15% and added another quarter posistion when it dropped an additional 15.Downside seems limited.

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Related Tickers

12/19/2014 4:00 PM
CRUS $22.73 Up +0.05 +0.22%
Cirrus Logic CAPS Rating: *****
AAPL $111.78 Down -0.87 -0.77%
Apple CAPS Rating: ****
STM $7.61 Down -0.08 -1.04%
STMicroelectronics… CAPS Rating: ***
TXN $54.23 Down -0.24 -0.44%
Texas Instruments,… CAPS Rating: ****

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