5-Star Stocks Poised to Pop: Abbott Labs

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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, health-care giant Abbott Laboratories (NYS: ABT) has earned a coveted five-star ranking.

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

Abbott facts

Headquarters (founded)Abbott Park, Ill. (1888)
Market Cap$90.2 billion
IndustryPharmaceuticals
Trailing-12-Month Revenue$38.9 billion
ManagementChairman/CEO Miles White (since 1999)
CFO Thomas Freyman (since 2001)
Return on Equity (average, past 3 years)22.8%
Cash/Debt$8.1 billion / $15.4 billion
Dividend Yield3.6%
CompetitorsMerck
Roche Holding
Sanofi

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

On CAPS, 97% of the 2,646 members who have rated Abbott believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, toaoyoda, tapped the stock as a special opportunity:

[Abbott] has been a stellar performer for decades but the upcoming splitup will enhance shareholder value even more. The pharma business will be spun off to showcase the greater P/E ratio appropriate to a purer play. Meanwhile, [Abbott's] core businesses of diagnostic, nutrition and medical devices will receive the focus of both management (Miles White will remain with the core) and investors. ... The company has been hit by [manufacturing] problems at individual plants in the past but these are one-off problems and not reflective of the overall [manufacturing] prowess of this company.  

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. Of course, despite a strong five-star rating, Abbott may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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. The Motley Fool owns shares of Abbott. Motley Fool newsletter services have recommended buying shares of Abbott. Try any of our Foolish newsletter services free for 30 days.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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