Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug company Endo Pharmaceuticals Holdings (Nasdaq: ENDP ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Endo's business and see what CAPS investors are saying about the stock right now.
Endo facts
| Headquarters (founded) |
Chadds Ford, Pa. (1997) |
| Market Cap |
$3.26 billion |
| Industry |
Pharmaceuticals |
| Trailing-12-Month Revenue |
$2.12 billion |
| Management |
CEO David Holveck (since 2008)
CFO Alan Levin (since 2009)
|
| Return on Equity (average, past 3 years) |
19.2% |
| Cash/Debt |
$692.9 million / $4.03 billion |
| Competitors |
Abbott Labs (NYSE: ABT )
Johnson & Johnson (NYSE: JNJ )
Pfizer (NYSE: PFE )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 449 members who have rated Endo believe the stock will outperform the S&P 500 going forward. These bulls include tbonci and All-Star zzlangerhans, who is ranked in the top 0.5% of our community.
A couple of months ago, tbonci listed several of Endo's positives: "A pharma pick with a broad portfolio including cancer treatments and Percocet along with multiple ongoing trials for new drugs. They have a good sales growth and are great on cash."
Over the next five years, in fact, Endo is expected to grow its bottom line at a solid rate of almost 12% annually. That's faster than much larger rivals such as Abbott (9%), Johnson & Johnson (6%), and Pfizer (3%).
CAPS pharma expert zzlangerhans elaborates on the bull case:
Along with Valeant, this represents my experiment with mid-cap pharma stocks on buying sprees that have been beaten down in the recent broad market decline. Despite taking on a boatload of debt to purchase Penwest Pharmaceuticals, Healthtronics, Qualitest, and American Medical Systems in the last year, Endo was coasting with a share price around 40 until disaster hit the markets at the end of July. Since then the stock's trajectory has been almost straight downward. Debt-funded growth and economic uncertainty don't seem to mix well. This plunge could certainly go a lot further before it's done, but I suspect that Endo will be able to wreak profits from their acquisitions quickly enough to cover their debts and transform into a larger pharma with a share price to match.
What do you think about Endo, 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!
Interested in another easy way to track Endo? Add it to your watchlist.
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