Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, prescription and over-the-counter drugmaker Perrigo (Nasdaq: PRGO ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Perrigo's business, and see what CAPS investors are saying about the stock right now.
Perrigo facts
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Headquarters (founded)
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Allegan, Mich. (1887)
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Market Cap
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$2.19 billion
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Industry
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Pharmaceuticals
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TTM Revenue
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$2.05 billion
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Management
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CEO Joseph Papa (since 2006)
CFO Judy Brown (since 2006)
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Return on Equity (average, last three years)
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13.6%
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Competitors
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Procter & Gamble (NYSE: PG )
Johnson & Johnson (NYSE: JNJ )
GlaxoSmithKline (NYSE: GSK )
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CAPS members bullish on PRGO also bullish on
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Apple (Nasdaq: AAPL )
Google (Nasdaq: GOOG )
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CAPS members bearish on PRGO also bearish on
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Capital One Financial (NYSE: COF )
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 317 of the 330 members who have rated Perrigo -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars tenmiles and sandvig, both of whom are ranked in the top 0.5% of our community.
In February, tenmiles tapped the stock as a potent prescription for portfolio pain relief:
House brand drugs should fare relatively well in current economic climate. Company is a secular grower and still guiding to roughly 13x forward earnings in upcoming [fiscal year]. Mid-teen ROE significantly above peer averages-looks fairly valued/slightly cheap at current price near term with strong likelihood of market beater over next 3-5 years.
In late December (when the stock was 30% more expensive than today), sandvig highlighted Perrigo as a potent way to play copycat:
Why take the risk of innovation when you can copy?
[Perrigo] sells generic products under the store name with packaging that is similar to the leading brand. They not only get the benefit of copying the product, they get the benefit of copying the packaging.
Last year they had 26% growth in sales. In these hard economic times, shoppers will look for the cheaper brands and take comfort in buying a product that look like the leading brand.
They only copy what already works and they let someone else promote the brand.
What do you think about Perrigo, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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