4-Star Stocks Poised to Pop: GlaxoSmithKline
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug giant GlaxoSmithKline (NYS: GSK) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Glaxo's business and see what CAPS investors are saying about the stock right now.
Glaxo facts
Headquarters (founded) | Brentford, U.K. (1935) |
Market Cap | $114.0 billion |
Industry | Pharmaceuticals |
Trailing-12-Month Revenue | $44.3 billion |
Management | CEO Andrew Witty (since 2008) |
Return on Equity (average, past 3 years) | 44.2% |
Cash/Debt | $9.4 billion / $23.7 billion |
Dividend Yield | 5.6% |
Competitors | Novartis |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 1,415 members who have rated Glaxo believe the stock will outperform the S&P 500 going forward.
Just last month, one of those bulls, BlacknGold, touched on several trends working in Glaxo's favor:
Unlike their competitors the company has already faced its "patent cliff". ... Also, [Glaxo] is expecting 30 drugs to reach late-stage development within the next three years.
Another reason to be bullish about [Glaxo] is the fact that, among Big Pharma, the company is the leader in antibiotic R&D. I know, I know-antibiotics don't generate the revenue that home-run cancer drugs do. But consider the enormous population affected by infectious disease (much larger than any cancer group). ...
You can laugh today, but antibiotics will be a sizable part of Big Pharma revenue in the next 10 years. No one is better equipped to answer the call than [Glaxo].
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Glaxo, Novartis, and Pfizer. 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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