At The Motley Fool, we poke plenty of fun at Wall Street
analysts and their endless cycle of upgrades, downgrades, and
"initiating coverage at neutral." So you might think we'd be
the last people to give virtual ink to such "news." And we
would be -- if that were all we were doing.
But in "This Just In," we don't simply tell you what the
analysts said. We'll also show you whether they know what
they're talking about. To help, we've enlisted
Motley Fool CAPS, our tool for rating stocks and analysts
alike. With CAPS, we track the long-term performance of Wall
Street's best and brightest -- and its worst and sorriest,
too.
And speaking of the best ...
Shareholders of
Texas Instruments (NYSE: TXN) have seen their
stock trounce the S&P's gains over the past year -- and
to hear
FBR Capitaltell it, the good news isn't over yet. While
other investors may shudder at TI's seemingly high 33 P/E,
this analyst looks at this stock and spies ... a screaming
bargain.
What is it, exactly, that FBR sees that others do not?
All of which has FBR thinking TI is "extremely
inexpensive" today -- enough so that it's likely to keep on
"outperforming" the market just as it's done all year long.
But is the logic AOK at FBR?
Let's go to the tape
At first glance, you might not think so. Fact is, while
FBR enjoys a strong reputation on the Street, its numbers
don't always back that up. Over the past three years that
we've tracked this analyst, only about 47% of FBR's stock
picks have managed to beat the market -- and in the
semiconductor sectorin particular, FBR's batting only
about .400 (great stats in baseball; not so hot in
stock-picking), hurt by recommendations such as:
Stock
FBR Says:
CAPS says:
FBR's Picks Lagging S&P By:
MEMC Electronic Materials (NYSE:
WFR)
Outperform
*****
55 points (four picks)
NVIDIA (Nasdaq: NVDA)
Outperform
****
12 points
Applied Materials (Nasdaq: AMAT)
Outperform
****
3 points
On the other hand, though, FBR
haspicked some outstanding winners as well:
Stock
FBR Says:
CAPS says:
FBR's Picks Beating (Lagging) S&P
By:
AMD (NYSE: AMD)
Outperform
** Continued... |