5-Star Stocks Poised to Pop: Female 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, female condom maker Female Health (Nasdaq: FHCO) has earned a coveted five-star ranking.

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

Female Health facts

Headquarters (Founded)

Chicago (1896)

Market Cap

$153.4 million

Industry

Personal products

Trailing-12-Month Revenue

$27.5 million

Management

CEO O. B. Parrish (since 1994)
CFO Donna Felch (since 2006)

Return on Capital (Average, Past 3 Years)

20.3%

Cash/Debt

$3.35 million / $51 thousand

Other Highly Rated Personal Products Stocks

Procter & Gamble (NYSE: PG)
Kimberly-Clark (NYSE: KMB)
Colgate-Palmolive (NYSE: CL)

CAPS Members Bullish on FHCO Also Bullish on

Johnson & Johnson (NYSE: JNJ)

CAPS Members Bearish on FHCO Also Bearish on

Starbucks (Nasdaq: SBUX)
PotashCorp (NYSE: POT)

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

On CAPS, 97% of the 107 members who have rated Female Health believe the stock will outperform the S&P 500 going forward. These bulls include jerseytix and All-Star TSIF, who is ranked in the top 2% of our community.

Late last month, jerseytix strongly advised Fools to act on the prophylactic leader:

They have a corner on the female condom market and key strategic partnerships with countries in peril around the world. They are now expanding into the U.S. with a condom that is 33% cheaper than the export brand. This is a key development.

In an earlier pitch, TSIF expands on the expansion possibilities:

It has an international presence and it's possible that government programs (especially under Obama) could buy and provide the products as part of the international fight against HIV/AIDS. Recently a US company lost government contracts to a Chinese company for male products, but I see that as unlikely in the female market. [Female Health's] patents and application are harder to duplicate. … Again, it is a tiny, with a P/B over 12 which stretches upside, but they should grow into it.

What do you think about Female Health, 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. Procter & Gamble, Kimberly-Clark, and Johnson & Johnson are all Motley Fool Income Investor picks. Starbucks is a selection of Stock Advisor. The Fool owns shares of Starbucks and Procter & Gamble. The Fool's disclosure policy always gets a perfect score.

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