Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip-testing equipment maker FormFactor (NASDAQ:FORM) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at FormFactor's business and see what CAPS investors are saying about the stock right now.
FormFactor facts
|
Headquarters (founded) |
Livermore, California (1993) |
|
Market Cap |
$648.6 million |
|
Industry |
Semiconductor equipment |
|
TTM Revenue |
$290.8 million |
|
Management |
Founder/Chairman Igor Khandros CEO Mario Ruscev |
|
Return on Equity (average last three years) |
5.9% |
|
Competitors |
Advantest (NYSE:ATE), Cascade Microtech (NASDAQ:CSCD) |
|
CAPS members bullish on FORM also bullish on |
Apple (NASDAQ:AAPL), Portfolio Recovery Associates (NASDAQ:PRAA) |
|
CAPS members bearish on FORM also bearish on |
General Motors (NYSE:GM), UAL (NYSE:UAUA) |
Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 964 of the 992 members who have rated FormFactor -- or 97% -- believe the stock will outperform the S&P 500. These bulls include afalk42 and Aggiemedic01.
In October, afalk42 noted that semiconductors "are going to continue to play a huge role in the industry, and the wafer probes made by these guys are essential for the semiconductor business. ... Should recover nicely and provide solid growth when the current fear-mongering is over."
In a pitch from earlier this month, Aggiemedic01 agrees, tapping FormFactor as a beaten-down, best-of-breed bargain:
Patience being the key word here. This is a depressed cyclical. Providing others don't catch up in terms of technology, when prices for the end product start turning up, FORM will shoot up as well. This may bounce around at low prices for a bit, but when it heads up, it will be a great stock to own.
What do you think about FormFactor, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.
