If Linear Technology
Linear runs on margins that remind you of Google
The company has started to reverse the cutbacks and shutdowns that resulted in forced employee vacation time earlier this year, because demand is picking up month by month and Linear's factories are running at about 75%-80% capacity again. The all-important book-to-bill ratio is back over 1.0, which means the company takes in orders faster than it can send out product. And it's doing all of this with industry-leading gross margins and no pricing pressure to speak of.
It's an enviable position to be in, and the future looks bright for this Stock Advisor recommendation. Linear is taking aim at the market for industrial semiconductors, including a plethora of chips designed for battery management and infotainment systems in electric and hybrid cars. Think of Linear the next time you buy a Toyota
Fool contributor Anders Bylund owns shares in Google, but he holds no other position in any of the companies discussed here. Google is a Motley Fool Rule Breakers recommendation. Linear Technology is a Motley Fool Stock Advisor selection. Microsoft is a Motley Fool Inside Value recommendation. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.