Why CVS Caremark Is Poised to Keep Popping

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 has earned a coveted five-star ranking.

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

CVS Caremarkfacts

Headquarters (founded)

Woonsocket, R.I. (1892)

Market Cap

$63.9 billion

Industry

Drug retail

Trailing-12-Month Revenue

$123.1 billion

Management

CEO Larry Merlo (since 2011)

CFO David Denton (since 2010)

Return on Equity (average, past 3 years)

9.6%

Cash/Debt

$1.4 billion/$9.8 billion

Dividend Yield

1.7%

Competitors

Express Scripts Holding

Walgreen

Wal-Mart Stores


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

On CAPS, 96% of the 1,769 members who have rated CVS Caremark believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, ValueInvestor747, tapped CVS Caremark as a particularly solid income opportunity:

Not my traditional investment as I'm relying on more growth than anything, but still pays a decent dividend and valuation is OK. They have impressed me with [year-over-year] revenue growth and with the baby boomers continuing to age, I see huge growth. It may take a few years, but I have time.

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 Caremark may not be your top choice.

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The article Why CVS Caremark Is Poised to Keep Popping 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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