4-Star Stocks Poised to Pop: Intel

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, computer chip king Intel (NYSE: INTC  ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

Intel facts 

Headquarters (Founded)

Santa Clara, Calif. (1968)

Market Cap

$132.62 billion

Industry

Semiconductors

TTM Revenue

$39.95 billion

Management

CEO Paul Otellini (since 2005)

CFO Stacy Smith (since 2007)

Return on Equity (avg. last three years)

17.2%

CAPS members bullish on INTC also bullish on

Microsoft (Nasdaq: MSFT  )

Cisco Systems (Nasdaq: CSCO  )

General Electric (NYSE: GE  )

CAPS members bearish on INTC also bearish on

Dell (Nasdaq: DELL  )

Google

Ford Motor (NYSE: F  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 1,257 of the 1,350 All-Star members who have rated Intel -- some 93% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include JesperA and EBeaver, both of whom are ranked in the top 15% of our community.

In January, JesperA reminded our community that Intel:

... is a company that prints its own money. Slowdown in the US? So what! What brand of chips do they use in the rest of the world? The abacus is not the tool of choice in emerging markets, I would think.

A more recent pitch from EBeaver in March followed that bullish line of thinking, elaborating on Intel's lead in the chip race:

Intel has made the leap over [Advanced Micro Devices (NYSE: AMD  ) ] in it's processor war with the dual core. It is now in the process of pushing the bar higher with it's offering of a quad-core design currently offered in the business and server based communities. A one year analysis shows almost 20% value over the S&P 500 and it looks like it will maintain it's position until AMD can find it's footing to get an edge in the marketplace.

What do you think about Intel, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Intel, Microsoft, and Dell are Motley Fool Inside Value recommendations. Google is a  Motley Fool Rule Breakers selection. Try any of our Foolish newsletter services, free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (5) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 20, 2008, at 1:23 PM, TEBuddy wrote:

    EBeaver was just spouting the bull about Intel's processors leading the way like all the analysts do. Its all much the same, brainwashed. AMD continues to break world records for computing capability with its years old technology and at a power and price point below Intel. That will be no different moving forward with AMD's latest server cpus, that again the analysts fail to mention, that AMD's 45nm power sipping Shanghai with HT3.0 will come out before the Nehalem i7 that consumes 33% more power than AMD's Shanghai, and with HT3.0 AMD will still have more memory bandwidth, then HT3.1 will only serve to increase that performance in a revision.

    Dreamworks must be dreaming if they think they are going to be using Intel graphics anytime soon. More than likely they will be getting Intel servers and workstations that have AMD or Nvidia graphics cards. Intel has no advantage on performance when it comes to servers, so what they were thinking I do not know. AMD already has a long history in optimization for businesses, especially now in graphics, but Intel probably gave them free software support to squeeze AMD out of market share. Good Luck Dreamworks, is all I have to say.

  • Report this Comment On August 20, 2008, at 1:29 PM, TEBuddy wrote:

    Oh, and meant to say, this stock is right where it should be at an earnings ratio of about 20. Find a smaller cap stock if you want it to go higher. NVDA was a great play last week, because it to will end up back at a ratio around 18-20.

  • Report this Comment On August 20, 2008, at 1:42 PM, AboutDworld wrote:

    You must me be an AMD employee TEBuddy. Wake up and Smell the coffee!! :o)

  • Report this Comment On August 20, 2008, at 2:21 PM, TEBuddy wrote:

    I done woke up and you are still dreaming. What is new about Nehalem? Nothing, its all been done before either by Intel themselves or AMD. Quick Connect? Looks a lot like Dirrect Connect. What is this new power management? The same thing they aleady did and took credit for in Penryn?

    They make some good stuff, but people dont have the facts right, so analysts decieve the public or manipulate the market in this manner.

    AMD's 45nm products consume a lot less power than their 65nm counterparts, and well below Intel's.

    Intel's margins are deeply hurt by their competition with AMD. You want to know why profits aren't growing as much as they used to? Its because Intel is hurt by just as much and more by price cuts, because of the huge market share. They need this near monopoly to give you good performance at reasonable prices and keep any profit.

    They aren't going to grow a whole lot, only move laterally from desktops to netbooks, or so on.

  • Report this Comment On August 26, 2008, at 4:09 PM, SiliconMfg wrote:

    TEBuddy- I hate to burst your bubble, but, you're wrong. Intel's direct connect is different and reflective of the technology bouncing between AMD and Intel. Advantage goes to Intel, due to mfg and execution. AMD is still trying to get its asset-lite strategy, in the meantime losing market share and $$. Their transition to 45nm isn't fast enough, not to mention the power and leakage issues that AMD has reported facing. These hurt yield, speed, performance and power.

    Profits is NOT by market share alone. Last I looked INTC's profit MARGIN after paying for R&D, dev., mfg, sales, marketing and corp costs is running ~50%.

    AMD had better execute quickly and better on both sides of the coin.

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