Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, analog chip maker Analog Devices (NYSE: ADI) has earned a respected four-star ranking.

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

Analog Devices facts

Headquarters (Founded) Norwood, Mass. (1965)
Market Cap $9.4 billion
Industry Semiconductors
Trailing-12-Month Revenue $3 billion
Management CEO Jerald Fishman (since 1996)
CFO David Zinsner (since 2009)
Return on Equity (Average, Past 3 Years) 19.8%
Cash/Debt $3.4 billion / $906.9 million
Dividend Yield 3.2%
Competitors NXP Semiconductors (Nasdaq: NXPI)
STMicroelectronics (NYSE: STM)
Texas Instruments (NYSE: TXN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 401 members who have rated Analog Devices believe the stock will outperform the S&P 500 going forward. These bulls include polterziets and MagicDiligence.

A couple of months ago, polterziets listed several of Analog Devices' positives: "Low valuation, strong growth, strong margins, dividend growth, increasing need for chips in everyday devices, healthy balance sheet compared to competitors."

In fact, Analog Devices boasts a robust three-year average operating margin of 27%. That's much higher than that of rivals STMicro (0.6%) and Texas Instruments (14.9%), let alone NXP's average negative margin of 0.4%.

CAPS member MagicDiligence elaborates on the Analog Devices bull case:

I believe the future for analog chip demand is very bright. Smart-phones, tablets, even laptop computers now carry half a dozen or more sensors. Analog chips are important in efficient power management, a huge concern for mobile devices. ... Automobiles continue to be outfitted with ever more sophisticated systems (think park assist, lane assist, blind spot detect -- all of which need sensors to function). There should be a significant amount of demand going forward. 2010 and 2011's big step up over 2008 levels probably shouldn't be used as a barometer, as a lot of pent-up demand from a poor 2009 was realized. But there is no reason ADI cannot grow at 10-15% rates over the next few years.

Given this, and assigning a reasonable, historical multiple on the stock, my price target is $49.

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