4-Star Stocks Poised to Pop: Grupo Casa Saba

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Mexican health-care products distributor Grupo Casa Saba (NYSE: SAB) has earned a respected four-star ranking

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

Casa Saba facts

Headquarters (Founded)

Mexico City (1892)

Market Cap

$501 million

Industry

Health-care distributors

Business Segments

Pharmaceutical, health, and beauty; general merchandise; publications

Trailing-12-Month Revenue

$2.2 billion

Management

CEO Gabriel D'Jamus (since 2000)
CFO Alejandro Gomez (since 2000)

Return on Equity (Average, Past 3 Years)

13.8%

Cash / Debt

$15.1 million / $163.2 million

Trailing-12-Month Dividend Yield

2.5%

Other Highly Rated Health-Care Distributors

McKesson (NYSE: MCK)
Cardinal Health (NYSE: CAH)

CAPS Members Bullish on SAB Also Bullish on

General Electric (NYSE: GE)
Chesapeake Energy (NYSE: CHK)

CAPS Members Bearish on SAB Also Bearish on

Goldman Sachs (NYSE: GS)
BPZ Resources (NYSE: BPZ)

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

On CAPS, 95% of the 151 members who have rated Casa Saba believe the stock will outperform the S&P 500 going forward. These bulls include cdubbies and All-Star mrindependent, who is ranked in the top 2% of our community.

A few months ago, cdubbies noted that Casa Saba "has a strong financial position with little debt." Our CAPS member concludes: "Generic pharma should be a strong industry in tough economic times and this company has little competition in an emerging market ... This stock is probably undervalued because it lacks coverage from Wall St."

In a pitch from last week, mrindependent expands on the stock as a healthy way to play emerging Mexico:

Grupo Casa Saba ... is a multi-channel, multi-product national wholesale distributor in Mexico. The Company distributes pharmaceutical products, health, beauty aids and consumer goods, general merchandise, publications and other products. This ... company consistently increases revenues and maintains high returns on equity (over 16%). Currently selling for just over book value, this company appears to be undervalued.

What do you think about Casa Saba, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. McKesson is a Motley Fool Stock Advisor selection. Chesapeake is a choice of Inside Value, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.

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