4-Star Stocks Poised to Pop: Varian Medical Systems

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oncology equipment maker Varian Medical Systems (NYS: VAR) has earned a respected four-star ranking.

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

Varian facts

Founded (founded)

Palo Alto, Calif. (1948)

Market Cap

$6.8 billion

Industry

Health care equipment

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Timothy Guertin
CFO Elisha Finney

Return on Equity (average, past 3 years)

29%

Cash/Debt

$648.4 million / $161.8 million

Competitors

Accuray
Elekta
Siemens


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

On CAPS, 96% of the 400 members who have rated Varian believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, troym72, tapped Varian as a rather timely bargain opportunity:

I think the recent pull-back provides a good entry-point for [Varian]. Their revenue and EPS are as solid as ever and rumor is that their managment may be expecting increased demand. Varian has been an outperformer for years and I see no reason this trend will stop anytime soon.

If you want market-beating returns, 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 its four-star rating, Varian may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

The article 4-Star Stocks Poised to Pop: Varian Medical Systems originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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