Why STMicro Will Outperform in 2013

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, semiconductor company STMicroelectronics (NYSE: STM  ) has earned a coveted five-star ranking.

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

STMicro facts

Headquarters (founded)

Geneva, Switzerland (1987)

Market Cap

$7.3 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$8.5 billion

Management

Chairman/CEO Carlo Bozotti (since 2005)

CFO Mario Arlati (since 2012)

Return on Equity (average, past 3 years)

(4.2%)

Cash/Debt

$1.9 billion / $1.6 billion

Dividend Yield

4.1%

Competitors

Infineon Technologies

NXP Semiconductors

Texas Instruments

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

On CAPS, 93% of the 244 members who have rated STMicro believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, MKSturm, succinctly summed up the STMicro bull case for our community:

First stock I bought, prior to joining Fool.com. Up by 35% since my purchase in November 2012, and continues to grow. Strong numbers, good involvement in mobile technology, and the dividend doesn't hurt either.

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

We've found another company we are incredibly excited about. The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

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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