Why CVS Caremark Is Poised to Keep Popping

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  ) has earned a coveted five-star ranking.

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

CVS Caremark facts

 

 

Headquarters (founded)

Woonsocket, R.I. (1892)

Market Cap

$63.9 billion

Industry

Drug retail

Trailing-12-Month Revenue

$123.1 billion

Management

CEO Larry Merlo (since 2011)

CFO David Denton (since 2010)

Return on Equity (average, past 3 years)

9.6%

Cash/Debt

$1.4 billion/$9.8 billion

Dividend Yield

1.7%

Competitors

Express Scripts Holding (NASDAQ: ESRX  )

Walgreen (NYSE: WAG  )

Wal-Mart Stores (NYSE: WMT  )

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

On CAPS, 96% of the 1,769 members who have rated CVS Caremark believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, ValueInvestor747, tapped CVS Caremark as a particularly solid income opportunity:

Not my traditional investment as I'm relying on more growth than anything, but still pays a decent dividend and valuation is OK. They have impressed me with [year-over-year] revenue growth and with the baby boomers continuing to age, I see huge growth. It may take a few years, but I have time.

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 Caremark 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.

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