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.
What do you think about ON, 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!
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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