Why Kulicke and Soffa Will Bounce Back

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 and Soffa Industries (NASDAQ: KLIC  ) has earned a coveted five-star ranking.

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

Kulicke and Soffa facts

Headquarters (founded)

Singapore (1951)

Market Cap

$828.9 million

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$744.8 million

Management

CEO Bruno Guilmart (since 2010)

CFO Jonathan Chou (since 2010)

Return on Equity (average, past 3 years)

33.6%

Cash / Debt

$498.6 million / $0

Competitors

ASM Pacific Technology

BE Semiconductor Industries

Teradyne

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

On CAPS, 96% of the 361 members who have rated Kulicke and Soffa believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, cfsanabria, succinctly summed up the Kulicke and Soffa bull case for our community:

As the global economy slowly climbs out of its recession, the semiconductor capital industry will follow, driven by rising demand for consumer electronics (most notably Smartphones). K&S will outperform due to its strong balance sheet, regular cost-cutting, and industry leadership.

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

After all, it's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.


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