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Why Intel Is Poised to Bounce Back

By Brian D. Pacampara, CFA - Apr 19, 2013 at 11:18AM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, computer chip giant Intel (INTC -0.86%) has earned a coveted five-star ranking.

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

Intel facts

Headquarters (founded)

Santa Clara, Calif. (1968)

Market Cap

$110.0 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$53.0 billion

Management

CEO Paul Otellini (since 2005)

CFO Stacy Smith (since 2007)

Return on Equity (average, past 3 years)

24.9%

Cash/Debt

$17.1 billion / $13.2 billion

Dividend Yield

4.2%

Competitors

AMD

Samsung Electronics

Texas Instruments

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

On CAPS, 94% of the 10,056 members who have rated Intel believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, damon1085, tapped the stock as a particularly attractive bargain opportunity:

INTC has a strangle hold on powerful computer chips used in desktops, laptops, and most importantly servers and data centers. The demand for all these chips has been declining in recent years, but it will not die out. This is where mobile comes in. INTC is losing in the mobile market, but they're just now making an effort to create a viable mobile processor. It won't be long before their R&D teams get up to speed and you'll see "Intel Inside" on many mobile devices.    

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.  

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Stocks Mentioned

Intel Corporation Stock Quote
Intel Corporation
INTC
$41.65 (-0.86%) $0.36
Texas Instruments Incorporated Stock Quote
Texas Instruments Incorporated
TXN
$169.81 (1.31%) $2.19
Advanced Micro Devices, Inc. Stock Quote
Advanced Micro Devices, Inc.
AMD
$93.50 (-3.28%) $-3.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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