5-Star Stocks Poised to Pop: Genentech

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, biotech giant Genentech (NYSE: DNA) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Genentech facts

Headquarters (Founded)	San Francisco (1975)
Market Cap	$81.87 billion
Industry	Biotechnology
TTM Revenue	$11.94 billion
Management	CEO Arthur Levinson (since 1995) CFO David Ebersman (since 2005)
Return on Equity (avg. last three years)	23.9%
CAPS players bullish on DNA also bullish on	Apple (Nasdaq: AAPL) General Electric (NYSE: GE) Cisco Systems (Nasdaq: CSCO)
CAPS players bearish on DNA also bearish on	Yahoo! (Nasdaq: YHOO) Citigroup (NYSE: C) Pfizer (NYSE: PFE)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 493 of the 511 All-Star players who have rated Genentech -- some 96% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include grow76 and xthecritic, both of whom are ranked in the top 10% of our community.

In 2006, grow76 mentioned that Genentech is a "biotech leader that has an arsenal of drugs making a large pile of money. ... This company has a very bright future."

A more recent pitch from xthecritic reaffirmed that bullishness, while highlighting the stock's attractive valuation. As xthecritic argued this past February:

Genentech is the #1 biotech company in the world. The company is currently trading ... at a 25x PE multiple with a strong growth profile. This is a great opportunity to get into DNA at a nice valuation. Healthcare companies will continue to outperform in this chopping economic environment. This is a no-brainer outperform. Inject your portfolio with [Genentech].

Today, Genentech's P/E multiple remains roughly unchanged.

What do you think about Genentech, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.