Why Cirrus Logic Is Ready to Rally

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 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

$1.9 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, 95% of the 731 members who have rated Cirrus believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, ajbakerjr, succinctly summed up the Cirrus bull case for our community:

Close affiliation with market-leader [Apple] is a good thing (despite current negative sentiment). Plus the company's audio technology continues to expand its reach/penetration in the smartphone and tablet market, making it far from a one-trick pony. This is one smart way to play the mobile revolution.

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

Apple has been a longtime selection of Motley Fool co-founder David Gardner, helping lead his stock picks to gains of more than 120% in our Stock Advisor service since it launched in March 2002. Compare that to the S&P 500's return of 29% over that same time frame. David has managed to trounce the market by always being on the lookout for revolutionary stocks and recommending them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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