5-Star Stocks Poised to Pop: Endo Health Solutions

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.

Endo facts

Headquarters (founded) Chadds Ford, Pa. (1997)
Market Cap $3.4 billion
Industry Pharmaceuticals
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
Competitors Abbott Labs

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.

Just yesterday, one of those Fools, All-Star zzlangerhans, tapped Endo as a possible bargain opportunity:

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.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Endo may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Abbott Laboratories. Motley Fool newsletter services have recommended buying shares of Pfizer. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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7/22/2016 4:00 PM
ENDP $17.50 Down -0.50 -2.78%
Endo International CAPS Rating: ***