Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug company Endo Pharmaceuticals Holdings (Nasdaq: ENDP ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Endo's business and see what CAPS investors are saying about the stock right now.
Endo facts
| Headquarters (Founded) |
Chadds Ford, Pa. (1997) |
| Market Cap |
$3.89 billion |
| Industry |
Pharmaceuticals |
| Trailing-12-Month Revenue |
$1.6 billion |
| Management |
CEO David Holveck (since 2008)
CFO Alan Levin (since 2009)
|
| Return on Equity (Average, Past 3 Years) |
19.2% |
| Cash/Debt |
$774.3 million / $342.3 million |
| Competitors |
Abbott Labs (NYSE: ABT )
Johnson & Johnson (NYSE: JNJ )
Pfizer (NYSE: PFE )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 449 members who have rated Endo believe the stock will outperform the S&P 500 going forward. These bulls include 4thsuper and All-Star FoolSolo.
Late last year, 4thsuper brought Endo's most recent market-topping results to our community's attention: "[Earnings per share] up 36.5% over last year. Sales up 23% over last year. Beat earnings estimates by 2%. Profit margin 22%. ROE 23%."
Endo's leadership position and growth opportunities in the pain-management space continue to support its five-star CAPS rating. Over the next five years, Endo is even expected to grow its bottom line (13.7% per annum) at a much faster pace than gorilla rivals Abbott (8.9%), Johnson & Johnson (5.9%), and Pfizer (2.8%), as well as more like-sized foes such as Cephalon (Nasdaq: CEPH ) (7.1%) and King Pharmaceuticals (NYSE: KG ) (10.4%).
CAPS All-Star FoolSolo elaborates on the bull case:
[T]he FDA approval of Fortesta a couple of weeks ago is a good sign the company is continuing to diversify and bring new products to market, which will also deliver sales and revenue growth. Their acquisition of Qualitest Pharmaceuticals for about $1.2 billion in private equity was completed on December 1st, and looks like it will help boost revenues and further enables Endo to diversify into the generics market. ...
I won't go on a limb with a price prediction, but I do believe the company will continue or slightly accelerate their growth, which should help power the stock further up the charts.
What do you think about Endo, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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