Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug giant GlaxoSmithKline (NYSE: GSK ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Glaxo's business and see what CAPS investors are saying about the stock right now.
Glaxo facts
| Headquarters (Founded) | Brentford, U.K. (1935) |
| Market Cap | $107.4 billion |
| Industry | Pharmaceuticals |
| Trailing-12-Month Revenue | $43.12 billion |
| Management | CEO Andrew Witty (since May 2008) CFO Simon Dingemans (since March 2011) |
| Return on Capital (Average, Past 3 Years) | 23.7% |
| Cash/Debt | $9.5 billion / $24.1 billion |
| Dividend Yield | 4.8% |
| Competitors | Merck (NYSE: MRK ) Novartis (NYSE: NVS ) Pfizer (NYSE: PFE ) |
Sources: Capital IQ (a division of Standard & Poor's) and ! Motley F ool CAPS.
On CAPS, 95% of the 1,398 members who have rated Glaxo believe the stock will outperform the S&P 500 going forward. These bulls include headyinvestor and All-Star RedandBlack, who is ranked in the top 2% of our community.
Just last month, headyinvestor succinctly summed up the Glaxo bull case:
People need drugs, regardless of the economy. They have the added bonus of an established consumer goods line. Pharma was oversold and this stock will recover.
Over the next five years, in fact, Glaxo is expected to grow its bottom line at a brisk rate of 16.8% annually. That's much faster than rivals Merck (4.5%), Novartis (4.8%), and Pfizer (4.1%).
CAPS All-Star RedandBlack expands on the Glaxo outperform argument:
They are partnering with other drug makers in emerging markets (Dr. Reddy's in India) and investing in consumer products (Tums, Sominex). Nice dividend. Management during the last update indicated they would be buying back stock in on the high end of the $1-$2 billion range. Outperform.
What do you think about Glaxo, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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