5-Star Stocks Poised to Pop: inVentiv Health

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health-care management services specialist inVentiv Health (Nasdaq: VTIV) has earned a coveted five-star ranking.

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

inVentiv facts

Headquarters (Founded)

Somerset, N.J. (1997)

Market Cap

$545 million

Industry

Health-care services

Business Segments

Clinical, Communications, Commercial, Patient Outcomes

Trailing-12-Month Revenue

$1.1 billion

Management

CEO R. Blane Walter
COO Terrell Herring

Compound Annual Revenue Growth (Over Past 5 Years)

31.4%

Cash/Debt

$100.6 million/$324.1 million

Competitors

Express Scripts (Nasdaq: ESRX)
Covance (NYSE: CVD)

CAPS Members Bullish on VTIV Also Bullish on

Apple (Nasdaq: AAPL)
Buffalo Wild Wings (Nasdaq: BWLD)

CAPS Members Bearish on VTIV Also Bearish on

Citigroup (NYSE: C)
Bank of America (NYSE: BAC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98.6% of the 1,297 members who have rated inVentiv believe the stock will outperform the S&P 500 going forward. These bulls include Hozer02 and All-Star investorpoet2, who is ranked in the top 15% of our community.

Two months ago, Hozer02 highlighted inVentiv's clearly improving health: "Cost cutting and diversification from acquisitions providing improved efficiency and streamlining. I like it to rebound when the health reform dust settles."

In a pitch from late last month, investorpoet2 bolts on a more detailed bull case. Here's an excerpt:

They serve the pharmaceutical industry. Through acquisition they have added more and more services, and through cross-selling are hoping to be a one-stop shop for many companies looking to outsource some of their business functions. ...

Even if the company produces no organic growth over the next year, with their level of cash flow (which will show up on the earnings statements soon), bolt on acquisitions should commence soon, leading to higher earnings and greater value for shareholders. I look for InVentiv to trade around 12-15x operating cash flow in 2010, resulting in a share price of $40. Easily a double from here.

What do you think about inVentiv, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. inVentiv is a choice of Motley Fool Hidden Gems, as is Buffalo Wild Wings. inVentiv and Apple are Stock Advisor picks. The Fool owns shares of both inVentiv and Buffalo Wild Wings. The Fool's disclosure policy always gets a perfect score.

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