5-Star Stocks Poised to Pop: Teva Pharmaceutical

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, generic-drug giant Teva Pharmaceutical Industries (NAS: TEVA) has earned a coveted five-star ranking.

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

Teva facts

Headquarters (founded)

Petach Tikva, Israel (1901)

Market Cap

$40.0 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$18.3 billion

Management

CEO Shlomo Yanai (since 2007)
CFO Eyal Desheh (since 2008)

Return on Equity (average, past 3 years)

13.3%

Cash/Debt

$1.1 billion / $14.5 billion

Dividend Yield

1.8%

Competitors

Ranbaxy Laboratories
Sandoz International
Watson Pharmaceuticals

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

On CAPS, 97% of the 2,544 members who have rated Teva believe the stock will outperform the S&P 500 going forward.

Late last year, one of those Fools, callumturcan, succinctly summed up the bull case for our community:

Teva's stock buyback coupled with higher expected earnings in 2012 plus a low P/E will send the stock higher. Because it deals in generics it isn't affected negatively by the 2012-2013 patent cliff but is actually benefited by it. ... [I]t's a defensive stock with growth prospects and a high dividend. Plus it is emerging into some new and interesting markets, and is aggressively pursuing 3rd world markets.

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, Teva 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 thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Teva. Motley Fool newsletter services have recommended buying shares of Teva. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement