4-Star Stocks Poised to Pop: Covidien

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Irish healthcare products developer Covidien (NYS: COV) has earned a respected four-star ranking.

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

Covidien facts



Market Cap

$27.6 billion


Healthcare equipment

Trailing-12-Month Revenue

$11.9 billion


Chairman/CEO Jose Almeida
CFO Charles Dockendorff

Return on Equity (average, past 3 years)



$1.7 billion / $4.3 billion

Dividend Yield



Becton Dickinson
CR Bard
Johnson & Johnson

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

On CAPS, 96% of the 468 members who have rated Covidien believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, NHWeston102, tapped the stock as a particularly special opportunity: "Covidien is embracing a risky strategy, but one that could pay big buck -- they're going to drop most of their pharma for a more focused market, medical devices. They have some very fine tech and just might get bought."

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 a strong four-star rating, Covidien may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around 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 theTrackPoisedToCAPS account.

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

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Covidien, Becton Dickinson, and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson. 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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