Why CVS Caremark Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drugstore and pharmacy benefits giant CVS Caremark (NYSE: CVS  ) earned a coveted five-star ranking.

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

CVS facts

 

 

Headquarters (founded)

Woonsocket, R.I. (1892)

Market Cap

$64.3 billion

Industry

Drug retail

Trailing-12-Month Revenue

$120.1 billion

Management

CEO Larry Merlo (since 2011)

CFO David Denton (since 2010)

Return on Equity (average, past 3 years)

9.7%

Cash/Debt

$1.2 billion / $10.0 billion

Dividend Yield

1.8%

Competitors

Express Scripts (NASDAQ: ESRX  )

Walgreen (NYSE: WAG  )

Wal-Mart Stores (NYSE: WMT  )

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

On CAPS, 96% of the 1,749 members who have rated CVS believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, brenoboyle, succinctly summed up the CVS bull case for our community: "Attractive valuation, buybacks, increased prescription drug coverage, patent cliff increases generics for which CVS has better margins and aging population."

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, CVS may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it The Motley Fool's Top Stock for 2013. We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 05, 2013, at 8:54 AM, bestwaytoriches wrote:

    Brain,

    I have to agree CVS will out preform the S&P.

    Why RAD is not in your mix is pussling on that note RAD in the same sector has more than 50% gain in January alone and the professional money managers are predicting 2013 RAD to triple in price base on much stronger matrix riding on very strong trends leading to greater profits. This will continue to raise guidance on RAD Preformance. So I will continue visiting my local CVS But my investment for performance will be will RAD. Thanks for your views of fellow Fool CAPs.

    PS Moody s is underway of upgrading RAD this will send RAD over the $ 2 mark as mentioned yesterdays news.

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