Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip equipment maker Applied Materials (Nasdaq: AMAT ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Applied Materials' business and see what CAPS investors are saying about the stock right now.
Applied Materials facts
|Headquarters (Founded)||Santa Clara, Calif. (1967)|
|Market Cap||$15.4 billion|
|Trailing-12-Month Revenue||$10.5 billion|
|Management||Chairman/CEO Michael Splinter
CFO George Davis
|Return on Equity (Average, Past 3 Years)||10.7%|
|Cash/Debt||$6.24 billion / $1.95 billion|
Varian Semiconductor Equipment
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 2,077 members who have rated Applied Materials believe the stock will outperform the S&P 500 going forward.
It has solid fundamentals and is an essential driver of the semiconductor industry that provides the equipment to make chips to many different, competing companies, as well as moving toward the future of 3-D chips. While I initially was blown away by the opportunity, my excitement was tempered by the fact that while many of the large semiconductor firms use Applied Materials, it has major competitors. A Fool always has to be wary of the perfect story, and Applied Materials has a great one, especially with a rising dividend and management that has been with Applied for a few years now. However, I will be investing in [Applied Materials] because I believe it is a better value than Intel or other chip makers because regardless of who makes the chips (as long as they use Applied's equipment, which not all do), Applied Materials profits.
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