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5-Star Stocks Poised to Pop: Genzyme

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotech company Genzyme (Nasdaq: GENZ  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Genzyme facts

   

Headquarters (Founded)

Cambridge, Massachusetts (1981)

Market Cap

$17.76 billion

Industry

Biotechnology

TTM Revenue

$4.27 billion

Management

CEO Henri Termeer (since 1985),

CFO Michael Wyzga (since 1999)

Return on Capital (average last three years)

6.2%

Competitors

Genentech (NYSE: DNA  ) ,

Amgen (Nasdaq: AMGN  )

CAPS members bullish on GENZ also bullish on

Johnson & Johnson (NYSE: JNJ  ) ,

General Electric (NYSE: GE  )

CAPS members bearish on GENZ also bearish on

OSI Pharmaceuticals (Nasdaq: OSIP  ) ,

Wal-Mart Stores (NYSE: WMT  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 104 of the 110 All-Star members who have rated Genzyme -- some 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include zzlangerhans and PDTBiotech, both of whom are ranked in the top 10% of our community.

Last week, zzlangerhans noted that Genzyme "has a long track record of success developing drugs for orphan markets, and maintaining long-term income from those patient populations."

A pitch written by PDTBiotech just last night agrees, detailing Genzyme's potent past and pipeline. Here's an excerpt:

*Pioneer of the orphan disease development strategy. Beautifully executed and with perfect timing, it's unlikely any new companies will be able to pursue this strategy today. Have successfully priced marketed drugs at ridiculous levels to achieve revenue streams similar to other drug companies drugs for widespread diseases, but got the advantages of orphan drug designation.

* They're doing a nice job at bringing along new drugs.... Recent/upcoming approvals should be producing nearly half of their revenue by 2014.

What do you think about Genzyme, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson is a Motley Fool Income Investor recommendation. Wal-Mart is an  Inside Value pick. The Fool's disclosure policy always gets a perfect score.


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 October 24, 2008, at 6:54 AM, genzy12345 wrote:

    P/E of 45,

    no dividend,

    market crashing,

    doesn't sound like a 5 star rating to me. Sounds more like a sell if your long and cut your losses if you bought last year.

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Related Tickers

4/8/2011 3:59 PM
GENZ.DL $76.25 Down +0.00 +0.00%
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