Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto and cell phone chip specialist ON Semiconductor
With that in mind, let's take a closer look at ON's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Phoenix, Ariz. (1999)|
|Market Cap||$3.4 billion|
|Trailing-12-Month Revenue||$2.23 billion|
|Management||CEO Keith Jackson (since 2002)
CFO Donald Colvin (since 2003)
|Return on Capital (Average, Past 3 Years)||9.5%|
|Cash/Debt||$562.9 million / $786.0 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 493 members who have rated ON believe the stock will outperform the S&P 500 going forward. These bulls include EPS100Momentum and All-Star IBDvalueinvestin, who is ranked in the top 5% of our community.
Late last month, EPS100Momentum explained why Fools need to hop onto ON: "Earnings will keep getting stronger as auto sector recovery keeps getting stronger and base at a higher level."
ON's focus on power consumption reducing-chips continue to make it a highly rated play on a rebounding auto market. Currently, the stock even trades at a forward P/E (8.8) discount to rival mid-caps STMicro (10.4), Fairchild (9.2), and National Semi
If an uptrend in auto sales is as good of a bet as CAPS member IBDvalueinvestin believes, that valuation gap should only close over time:
[ON is] a Poster Child for a company that will benefit greatly as the Automotive sector starts gaining traction again, its not a maybe it gains traction, its a definite.
3 years since crash started in Automotive sector, those that waited to buy a new car are pushing their luck and will have to start spending in 2011 , I was one of those holding off but eventually had to buy a new car this year, I was forced to do so by getting into a car accident with my oldie but goodie Infinity. So eventually your forced to buy a new car, either by an auto accident or a costly breakdown in your old car not worth fixing.
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