4-Star Stocks Poised to Pop: Bristol-Myers (BMY)

4-Star Stocks Poised to Pop: Bristol-Myers

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical giant Bristol-Myers Squibb (NYSE: BMY ) has earned a respected four-star ranking.

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

Bristol-Myers facts

Headquarters (founded)	New York (1887)
Market Cap	$54.7 billion
Industry	Pharmaceuticals
Trailing-12-Month Revenue	$20.5 billion
Management	CEO Lamberto Andreotti CFO Charles Bancroft
Return on Equity (average, past 3 years)	30.9%
Cash/Debt	$5.0 billion / $5.4 billion
Dividend Yield	4.3%
Competitors	AstraZeneca Merck Roche Holding

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,799 members who have rated Bristol-Myers believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, sellhigh98, succinctly summed up the bull case for our community:

It is my belief that Bristol will outperform in the mid/long term due to its juicy and sustainable dividend, its smaller market cap when compared to companies like Merck or Pfizer, its wonderful return on equity and operating margins which show it has strong profitability and management. Also, its cash of [$5.03B] could just about pay off its debt [$5.42B] if needed. ... Bristol also has a strong current ratio of 1.63. Shares are also trading below their 50 and 200 day moving averages, making entering a new position even more promising.

If you want market-beating 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 a strong four-star rating, Bristol-Myers may not be your top choice.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

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Report this Comment On August 27, 2012, at 11:26 AM, fortuitoustrade wrote:

If you think about it, BMY immediately lost approx $3.5 per share upon news of the Hep C drug killing a patient. That equates to ~ a $6B loss in market cap. Once the news came out that they'll be accepting a $1.8B charge, then the stock started rising because the baby had been thrown out with the bathwater. Long 3081 shares at 31.87, will be completely out by 33.47. Interested to see if it does power through the 200 SMA this week. Hoh yeahhh! http://www.fortuitoustrade.blogspot.com/