Why Kulicke & Soffa Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip equipment maker Kulicke & Soffa Industries (NASDAQ: KLIC  ) has earned a coveted five-star ranking.

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

Kulicke & Soffa facts

 

 

Headquarters (founded)

Singapore (1951)

Market Cap

$926.9 million

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$791.0 million

Management

CEO Bruno Guilmart (since 2010)

CFO Jonathan Chou (since 2010)

Return on Equity (average, past 3 years)

39.5%

Cash/Debt

$440.2 million / $0

Competitors

ASM Pacific Technology

BE Semiconductor Industries

SHINKAWA

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

On CAPS, 96% of the 333 members who have rated Kulicke & Soffa believe the stock will outperform the S&P 500 going forward.

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

I just don't get why [Kulicke & Soffa] is so cheap. The fundamentals are very compelling; P/E 5.75 ... Zero Debt, while they are maintaining a gross margin of 46.5%. And despite these numbers they are currently trading at $12.30. ... For such a healthy and fundamentally strong company, especially in this tech recession, these guys look like a great value, and hopefully not a value trap.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a sure-fire way to secure your financial future. Of course, despite its five-star rating, Kulicke & Soffa may not be your top choice.

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