Wednesday, December 26, 2012

4-Star Stocks Poised to Pop: AVX

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronic component manufacturer AVX (NYSE: AVX  ) has earned a respected four-star ranking.

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

AVX facts

Headquarters (Founded)

Fountain Inn, S.C. (1972)

Market Cap

$2.19 billion

Industry

Electronic components

Trailing-12-Month Revenue

$1.67 billion

Management

Chairman/CEO John Gilbertson
CFO Kurt Cummings

Return on Equity (Average, Past 3 Years)

9.4%

Cash/Debt

$741.3 million / $0

Dividend Yield

2.3%

Competitors

Amphenol (NYSE: APH  )
Molex (Nasdaq: MOLX  )
TE Connectivity (NYSE: TEL  )

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

On CAPS, 94% of the 129 members who have rated AVX believe the stock will outperform the S&P 500 going forward. These bulls include Motley Fool co-founder Tom Gardner (TMFTomG), who is ranked in the top 10% of our community, and FoolSolo. �

Earlier this month, Tom Gardner listed several of AVX's positives: "Strong financials. Dividend payor. Serving growing markets. Well managed. Double-digit ROE. Tough year for the stock renders it cheap for long-term investors."

In fact, AVX currently sports a P/E of 8.7. That represents a discount to competitors like Amphenol (14.8), Molex (14.0), and TE Connectivity (11.1).

CAPS member FoolSolo expands on the outperform argument:

I honed in on AVX Corp. because it has some compelling numbers, and it is one of with a dividend. ... Judging by other news about the company, they appear to be one of the leaders in various technologies, including surface mount capacitors, ultra low-profile LED lighting connectors, and other passive and interconnect components. But they appear to be getting dumped along with the bath water.

What do you think about AVX, 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!

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

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