Why Analog Devices 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, semiconductor company Analog Devices (NASDAQ: ADI  ) has earned a respected four-star ranking.

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

Analog Devices facts

Headquarters (founded)

Norwood, Mass. (1965)

Market Cap

$12.7 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Jerald Fishman (since 1996)
CFO David Zinsner (since 2009)

Return on Equity (average, past 3 years)

21.9%

Cash/Debt

$3.9 billion / $821.6 million

Dividend Yield

2.8%

Competitors

NXP Semiconductors
STMicroelectronics
Texas Instruments

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

On CAPS, 92% of the 405 members who have rated Analog Devices believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, Acolin, helped bring the opportunity to our community's attention:

Thirteen billion dollar Analog Devices designs, manufactures and markets analog, mixed-signal and digital signal processing integrated circuits used in virtually all types of electronic equipment. This stock will pay Fools to hold it as they gain higher prices! [Analog Devices] pays almost 3% in a dividend. ... P/E is average 19. P/S and P/B ratios are 4.4 and 3.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Analog Devices may not be your top choice.

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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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