Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Danish diabetes-drug maker Novo Nordisk (NYSE: NVO ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Novo Nordisk's business and see what CAPS investors are saying about the stock right now.
Novo Nordisk facts
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Headquarters (Founded)
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Bagsvaerd, Denmark (1925)
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Market Cap
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$43.8 billion
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Industry
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Pharmaceuticals
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Trailing-12-Month Revenue
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$9.8 billion
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Management
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CEO Lars Sorensen (since 2000)
CFO Jesper Brandgaard (since 2000)
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Return on Equity (Average, Past 3 Years)
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27.9%
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Cash/Debt
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$1.87 billion/$270 million
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Dividend Yield
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1.9%
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Competitors
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Eli Lilly (NYSE: LLY )
sanofi-aventis (NYSE: SNY )
Wyeth (NYSE: WYE )
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CAPS Members Bullish on NVO Also Bullish on
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Johnson & Johnson (NYSE: JNJ )
General Electric (NYSE: GE )
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CAPS Members Bearish on NVO Also Bearish on
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3M (NYSE: MMM )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97.4% of the 433 members who have rated Novo Nordisk believe the stock will outperform the S&P 500 going forward. These bulls include georcole and All-Star Turbolover, who is ranked in the top 15% of our community.
Three months ago, georcole highlighted the distressing trend working in the stock's favor:
With food companies putting more sugar in a lot of our foods, diabetes is going to become a bigger problem than it is today. No matter what the economy does, people will still need to get their insulin and such, and Novo Nordisk is in a great position to capitalize on this unfortunate situation. ... I do not consider them a cheap stock, but I do see them as undervalued. And as revenue grows, so will their share price.
In an earlier pitch, Turbolover offers some firsthand insight into Novo Nordisk's potential:
This one falls under the Fool Rule of investing in what you know. Sadly, diabetes is a growth industry, and Novo Nordisk has great name recognition. When I was diagnosed with type II diabetes, I instantly recalled the Novo Nordisk commercials from [National Public Radio]. Most diabetes related companies seem to focus on delivery systems for insulin. With Type II diabetes rates skyrocketing, current research will pay off in the long term.
What do you think about Novo Nordisk, 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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