Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drugstore giant CVS Caremark (NYSE: CVS) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at CVS Caremark's business and see what CAPS investors are saying about the stock right now.
CVS Caremark facts
|
Headquarters (Founded)
|
Woonsocket, R.I. (1963)
|
|
Market Cap
|
$50.2 billion
|
|
Industry
|
Drug Retail
|
|
Trailing-12-Month Revenue
|
$84.9 Billion
|
|
Management
|
CEO Thomas Ryan (Since 1999)
CFO David Rickard (Since 1999)
|
|
Return on Equity (Average, Past Three Years)
|
11.4%
|
|
Competitors
|
Walgreen (NYSE: WAG)
Rite Aid (NYSE: RAD)
|
|
CAPS Members Bullish on CVS Caremark Also Bullish on:
|
Apple (Nasdaq: AAPL)
Johnson & Johnson (NYSE: JNJ)
|
|
CAPS Members Bearish on CVS Caremark Also Bearish on:
|
Citigroup (NYSE: C)
The Home Depot (NYSE: HD)
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Over on CAPS, fully 287 of 298 of the All-Star members who have rated CVS Caremark -- some 96% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include TMFHelical and esxokm, both of whom are ranked in the top 2% of our community.
Two weeks ago, TMFHelical wrote that Mr. Market is offering a "Great entry point on this recession resistant foundation stock." Our CAPS member continued: "Embracing the new paradigm of adjacent clinics will pay off for this company as well."
An earlier pitch from esxokm in 2006 shares that bullish sentiment and focused on the company's massive long-term tailwind:
CVS is a well-run retail pharmacy chain. Great brand recognition, ubiquitous presence, good customer service experience (from my viewpoint, at least).
But the biggest reason for a long-term outperform call is -- oh yes, you guessed it -- the Baby Boomer thesis! Sorry for dragging out that old cliche, but it is true. CVS should capture a lot of mindshare from these aging folks looking to satisfy their retail health needs.
What do you think about CVS Caremark, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!
What do the unfolding financial crisis and ongoing market volatility mean for your money? The Fool's here with answers. Get the best of our daily commentary and analysis in your inbox simply by entering your email address in the box below.
Terms & Conditions
RSS Headlines
Fool UK