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||$90.2 billion|
|Trailing-12-Month Revenue||$38.9 billion|
|Management||Chairman/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|
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.
[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.
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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. 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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