Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip maker Fairchild Semiconductor (NYSE: FCS) has earned a respected four-star ranking.

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

Fairchild facts

Headquarters (Founded)

South Portland, Maine (1959)

Market Cap

$1.14 billion



Trailing-12-Month Revenue

$1.5 billion


CEO Mark Thompson (since 2005)

CFO Mark Frey (since 2006)

Return on Equity (Average, Past 3 Years)



$460 million / $445 million


Texas Instruments (NYSE: TXN)

STMicroelectronics (NYSE: STM)

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

On CAPS, 91% of the 124 members who have rated Fairchild believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mrindependent and allstarvulture, both of whom are ranked in the top 10% of our community.

Late last week, mrindependent noted that Fairchild "has a spotty earnings history, but its last earnings surprise was positive." Our CAPS All-Star concludes: "If it manages to hit the current consensus forecast, then the company is likely to rise from its current valuation of 1.0 times book and 8 times forward earnings."

While Fairchild operates in the brutal power-management chip business with no real sustainable edge, the stock's recent weakness has drawn the attention of several top Fools. Over the past two weeks, Fairchild is down more than 10% while its bigger rivals Texas Instruments and STMicro have remained relatively flat. But with Fairchild continuing to show steady progress in its shift toward high-growth, high-margin end markets like smartphones, CAPS member allstarvulture thinks the stock is worth at least a closer look:

A risky play here, and my point of entry may have been too high. But, [Fairchild] had a positive earnings report, beating analyst estimates by $0.09/share ($0.40/$0.31) and announcing that revenue was up 8% [from] the first quarter and 47% year over year. Further, [Fairchild] announced a 3Q revenue estimate a shade higher than expectations.

So, why a risky play? Cash is king and [Fairchild], while improving revenue sequentially over a number of quarters, still has a choppy cash flow. This doesn't put them at risk as a going concern by any stretch of the imagination. But it is worth noting. With that in mind, I still give it the green thumb because I like the outlook for their sector and for the company itself at least for the foreseeable future.

What do you think about Fairchild, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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