Why GlaxoSmithKline Is Poised to Pop
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug giant GlaxoSmithKline has earned a respected four-star ranking.
With that in mind, let's take a closer look at Glaxo and see what CAPS investors are saying about the stock right now.
Glaxo facts
Headquarters (founded) | Brentford, U.K. (1935) |
Market Cap | $106.9 billion |
Industry | Pharmaceuticals |
Trailing-12-Month Revenue | $42.8 billion |
Management | CEO Andrew Witty (since 2008) |
Return on Equity (average, past 3 years) | 48.9% |
Cash / Debt | $5.8 billion / $28.1 billion |
Dividend Yield | 5.2% |
Competitors | Merck |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 1,440 members who have rated Glaxo believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star PsychoDr, tapped the stock as a rather healthy income opportunity:
Healthcare industry, 5.28% [dividend yield], low dividend payout percent, history of growing dividend, pharmaceutical with a reasonable pipeline. Depressed earnings due to European crisis and a couple drugs coming off patent protection. Prognosticators are expecting flat earnings for the next two years. With a dividend reinvest position, flat earnings are fine by me. Can you say cash cow? Share acquisition time people.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Glaxo 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 TrackPoisedTo CAPS account.
The article Why GlaxoSmithKline Is Poised to Pop originally appeared on Fool.com.
Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks 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 Motley Fool has a disclosure policy.
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