4-Star Stocks Poised to Pop: Dr. Reddy's Labs

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Indian pharmaceutical company Dr. Reddy's Laboratories (NYS: RDY) has earned a respected four-star ranking.

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

Dr Reddy's Laboratoriesfacts

Founded (founded)

Hyderabad, India (1984)

Market Cap

$5.1 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$1.8 billion

Management

Co-Founder/Chairman Dr. K. Anji Reddy
Managing Director/COO Kallam Reddy

Return on Equity (average, past 3 years)

18.3%

Cash/Debt

$334.8 million / $594.1 million

Competitors

Ranbaxy Laboratories
Sun Pharmaceutical Industries
Teva Pharmaceutical Industries


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

On CAPS, 96% of the 529 members who have rated Dr. Reddy's believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, NHWeston102, succinctly summed up the bull case for our community:

Hidden under the shadow of India's current money woes, Dr. Reddy is now a global generic company with superlative service creds. The domestic market alone insures they'll profit [1.2 billion consumers]. They have lots of little partnerships with companies large and small -- and, if they like what a small company is doing well [enough], they have the cash flow to buy it.

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, Dr. Reddy's may not be your top choice.

If that's the case, 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.

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At the time thisarticle was published 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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