5-Star Stocks Poised to Pop: Abbott Labs
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.
|Headquarters (Founded)||Abbott Park, Ill. (1888)|
|Market Cap||$84.0 billion|
|Trailing-12-Month Revenue||$38.4 billion|
|Management||Chairman/CEO Miles White (since 1999)|
CFO Thomas Freyman (since 2001)
|Return on Equity (Average, Past 3 Years)||23.1%|
|Cash/Debt||$7.98 billion / $16.7 billion|
|Competitors||Johnson & Johnson (NYS: JNJ) |
Merck (NYS: MRK)
Pfizer (NYS: PFE)
Sources: S&P Capital IQ and Motley Fool CAPS.
This past summer, NorthPort2000 touched on the tailwinds working Abbott's favor:
Baby boomers are finally realizing the importance of health, and why investing in that earlier will save them money in the future. With that said, Abbot will be involved one way or another in that process, with involvement in different types of health care product sectors. Nice dividend!!
Over the next five years, in fact, Abbott is expected to grow its bottom line at a solid rate of 9%. That's faster than other big pharma plays like Johnson & Johnson (6%), Merck (4%), and Pfizer (3%).
CAPS member troym72 elaborates on the bull case:
Abbot's forward P/E suggests that they will be worth close to $90 per share within the next 12 mos. That's nearly a 50% gain. Even if [Abbott] doesn't maintain a P/E of 15 through 2012, I still think there is significant upside. They are also considering spinning off their Rx division from their Medical Instruments division. This news has helped the stock outperform recently as well.
What do you think about Abbott, 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!
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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 and Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Abbott, Johnson & Johnson, and Pfizer, as well as creating a diagonal call position in Johnson & Johnson. 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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