5-Star Stocks Poised to Pop: CVS Caremark

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drugstore and pharmacy benefits giant CVS Caremark (NYS: CVS) has earned a coveted five-star ranking.

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

CVS Caremark facts

Headquarters (founded)

Woonsocket, R.I. (1892)

Market Cap

$56.9 billion

Industry

Drug retail

Trailing-12-Month Revenue

$116.5 billion

Management

CEO Larry Merlo (since 2011)
CFO David Denton (since 2010)

Return on Equity (average, past 3 years)

9.7%

Cash/Debt

$1.8 billion / $9.4 billion

Dividend Yield

1.4%

Competitors

Rite-Aid
Walgreen
Wal-Mart Stores


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

On CAPS, 96% of the 1,732 members who have rated CVS Caremark believe the stock will outperform the S&P 500 going forward.

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

When Walgreen got into a dispute with [Express Scripts], CVS picked up prescription share. That has been resolved but look for CVS to keep near 50% of those customers. The stock is cheap relative to earnings, good balance sheet, and they provided positive guidance. Looking for [$50 per share] out of this one.

If you want market-topping 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 five-star rating, CVS Caremark may not be your top choice.

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The article 5-Star Stocks Poised to Pop: CVS Caremark originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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