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4-Star Stocks Poised to Pop: Nanosphere

Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Nanosphere (Nasdaq: NSPH  ) , which develops technologies for diagnostic testing, has earned a respected four-star ranking.

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

Nanosphere facts

Headquarters

Northbrook, Ill.

Market Cap

$115 million

Industry

Medical instruments and supplies

Trailing-12-Month Revenue

$2.2 million

Management

CEO William Moffitt (since 2004)
CFO Roger Moody, Jr. (since 2007)

Return on Capital (Average, Past 3 Years)

(27.4%)

Compound Annual Revenue Growth (Over Past 3 Years)

24.8%

Competitors

Luminex Corporation (Nasdaq: LMNX  )
Gen-Probe (Nasdaq: GPRO  )

Key Supplier

Abbott Labs (NYSE: ABT  )

Other Highly Rated Medical Device Stocks

Medtronic (NYSE: MDT  )
Intuitive Surgical (Nasdaq: ISRG  )
Zimmer Holdings (NYSE: ZMH  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 92% of the 121 members who have rated Nanosphere believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars JakilaTheHun and zzlangerhans, both of whom are ranked in the top 0.5% of our community.

Just last week, JakilaTheHun described the stock as a "speculative pick on a company with a good amount of cash and has been slowly increasing revenues." Our All-Star concludes: "[Nanosphere] is still not anywhere near profitable, but thus far, they seem to have executed fairly well."

In a pitch from last month, zzlangerhans elaborates:

As much as it pains me to green thumb a company with "Nano" in their name, these guys actually do make and sell something. On the catalyst front, the news has been mostly good with FDA clearance of a new version of their molecular diagnostics platform and several new assays this year. FDA approval of a troponin assay and hemachromatosis diagnostic test are still pending, and positive outcomes could drive the share price back upward. Revenues, although low, have been on an upward trend and the dilutive financing is out of the way.

What do you think about Nanosphere, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Intuitive Surgical is a Motley Fool Rule Breakers pick. The Fool owns shares of and has written puts on Medtronic. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
NSPH $1.69 Down +0.00 +0.00%
Nanosphere CAPS Rating: **
LMNX $22.78 Down -0.33 -1.43%
Luminex Corp CAPS Rating: **
MDT $36.88 Down -0.19 -0.51%
Medtronic, Inc. CAPS Rating: *****
ZMH $62.04 Up +0.14 +0.23%
Zimmer Holdings, I… CAPS Rating: ****
ABT $62.25 Down -0.17 -0.27%
Abbott Laboratorie… CAPS Rating: *****
GPRO $81.19 Down -0.01 -0.01%
Gen-Probe, Inc. CAPS Rating: ***
ISRG $526.55 Down -4.95 -0.93%
Intuitive Surgical CAPS Rating: ****

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