Why Varian Medical Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oncology equipment maker Varian Medical Systems has earned a respected four-star ranking.

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

Varian facts

Headquarters (founded)

Palo Alto, Calif. (1948)

Market Cap

$7.8 billion

Industry

Health care equipment

Trailing-12-Month Revenue

$2.9 billion

Management

CEO Dow Wilson (since 2012)
CFO Elisha Finney (since 1999)

Return on Equity (average, past 3 years)

28.4%

Cash / Debt

$807.3 million / $206.3 million

Competitors

Accuray
Elekta
Siemens


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

On CAPS, 96% of the 404 members who have rated Varian believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, dreamjob, succinctly summed up the bull case for our community: "Varian is sporting high returns on capital, and its earnings appear to be quality in nature (operating cash flow is keeping pace with net income). I like how sales, earnings, and book value are growing, and I think I'm getting this for a fair price at $71."

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Varian may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." 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 Varian Medical Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement