Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty health care company Endo Health Solutions (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.
|Headquarters (founded)||Chadds Ford, Pa. (1997)|
|Market Cap||$3.4 billion|
|Trailing-12-Month Revenue||$2.9 billion|
|Management||CEO David Holveck (since 2008)
CFO Alan Levin (since 2009)
|Return on Equity (average, past 3 years)||14.4%|
|Cash/Debt||$248.3 million / $3.3 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 445 members who have rated Endo believe the stock will outperform the S&P 500 going forward.
Over the last couple of years I've watched them grow rapidly through debt-fueled acquisitions. I don't know much about the long-term viability and risks of such a strategy, but Wall Street seems to have liked the approach. Lately, the stock has been off recent highs close to [$40]. The company has experienced several minor setbacks including manufacturing issues of Voltaren Gel and Opana ER that adversely affected earnings, as well as a large legal payout to [Impax Laboratories], that has knocked the share price back below [$30].
I'm betting that the current retrace is a temporary phenomenon and that Endo stock will resume its upward trajectory once the next quarterly revenues are in line with company guidance. Of course, if Europe implodes between now and then all bets are off in the short term.
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