Why CVS Caremark Is Poised to Outperform

Brian D. Pacampara, The Motley Fool
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 earned a coveted five-star ranking.

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

CVS facts

Headquarters (founded)

Woonsocket, R.I. (1892)

Market Cap

$64.3 billion

Industry

Drug retail

Trailing-12-Month Revenue

$120.1 billion

Management

CEO Larry Merlo (since 2011)

CFO David Denton (since 2010)

Return on Equity (average, past 3 years)

9.7%

Cash/Debt

$1.2 billion / $10.0 billion

Dividend Yield

1.8%

Competitors

Express Scripts

Walgreen

Wal-Mart Stores


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

On CAPS, 96%of the 1,749 members who have rated CVS believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, brenoboyle, succinctly summed up the CVS bull case for our community: "Attractive valuation, buybacks, increased prescription drug coverage, patent cliff increases generics for which CVS has better margins and aging population."

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, CVS may not be your top choice.

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The article Why CVS Caremark Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Express Scripts. 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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