5-Star Stocks Poised to Pop: Novartis

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Swiss pharmaceutical giant Novartis (NYS: NVS) has earned a coveted five-star ranking.

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

Novartis facts

Headquarters (Founded)Basel, Switzerland (1895)
Market Cap$137 billion
IndustryPharmaceuticals
Trailing-12-Month Revenue$58.8 billion
ManagementCEO Joseph Jimenez
CFO Jonathan Symonds
Return on Equity (Average, Past 3 Years)15.7%
Cash/Debt$5.6 billion / $23.9 billion
Dividend Yield4.1%
CompetitorsMerck (NYS: MRK)
Pfizer (NYS: PFE)

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

On CAPS, 97% of the 1,522 members who have rated Novartis believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars clayman14 and starbucks4ever, both of whom are ranked in the top 10% of our community.    

A few months ago, clayman14 succinctly summed up the Novartis bull case: "Swiss Compan[y] + Decent Yield + Pharma."

Over the past five years, Novartis has even grown its bottom line at a solid rate of 8% annually. That's faster than other drug behemoths like Merck (-4%), Pfizer (-2%), and Johnson & Johnson (NYS: JNJ) (1%).

CAPS All-Star starbucks4ever expands on the Novartis outperform argument:

A reasonably safe bet. [M]anagement is finished destroying value through acquisitions. ... That leaves us with a low [price-to-earnings multiple], and with speculators assuming ... that with no more empire building the [earnings] will finally accrue to them. This illusion will put a floor under the price, especially when the [earnings are] stable and speculators are desperately looking for stability.

What do you think about Novartis, 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 newTrackPoisedToCAPS account.  

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Novartis, Pfizer, and Johnson & Johnson, as well as creating a diagonal call position in Johnson & Johnson. The Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 daysWe 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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