Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, British medical technology company Smith & Nephew has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Smith & Nephew and see what CAPS investors are saying about the stock right now.
Smith & Nephewfacts
Health care equipment
CEO Olivier Bohuon (since 2011)
Return on Equity (average, past 3 years)
$445.0 million / $69.0 million
Johnson & Johnson
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 125 members who have rated Smith & Nephew believe the stock will outperform the S&P 500 going forward.
Management at [Smith & Nephew] has achieved very strong [return on invested capital] and Cash ROIC numbers. Sales, earnings, and book value are all growing at a healthy clip. There are positive, stable, and growing owner earnings and free cash flow. There is also manageable debt here. I believe this is priced slightly below intrinsic value. I also like that this has recently become a 5 Star CAPS stock.
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, Smith & Nephew may not be your top choice.
We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." 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.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Smith & Nephew Will Outperform in 2013 originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Johnson & Johnson and Zimmer Holdings. Motley Fool newsletter services recommend 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 Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.