Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmacy benefit manager Medco Health Solutions (NYSE:MHS) has earned a respected four-star ranking.

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

Medco facts

Headquarters (founded)

Franklin Lakes, N.J. (1983)

Market Cap

$21.41 billion


Health-care services

TTM Revenue

$53.13 billion


CEO David Snow, Jr. (since 2003)
CFO Richard Rubino (since 2008)

Return on Equity (average, last three years)



Aetna (NYSE:AET)
UnitedHealth Group (NYSE:UNH)
Wal-Mart (NYSE:WMT)

CAPS members bullish on MHS also bullish on:

Johnson & Johnson (NYSE:JNJ)
General Electric (NYSE:GE)

CAPS members bearish on MHS also bearish on:

Research In Motion (NASDAQ:RIMM)

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

Over on CAPS, 846 of the 871 members who have rated Medco -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include tolstoy00 and All-Star ikkyu2, who is ranked in the top 2% of our community.

Late last month, tolstoy00 weighed the stock's potential against its major regulatory risk:

A great health care cost-containment play. During tough economic times mail-order pharmaceutical orders will increase as patients try to save money. My view on this company will change depending government health care reforms. If there is a strong move toward socialized medicine, most health care companies will turn into non-profits.

In an earlier pitch from January, ikkyu2 addresses those concerns:

I work with these companies daily in my day job as a practicing doc.

In terms of market share, responsiveness to patients and physicians, and back end, I am beginning to feel strongly that Medco is best of breed.

The major risk, I think, is regulatory risk-the current administration may decide to alter the face of American medicine, record-keeping, and/or prescription drug benefits in a way that doesn't benefit [Medco].

I am not the decider, but I think I tend to doubt this will come to pass. If anything, I suspect Medco's model will be a basis for the shape of drug dispensing to come, and so they'll probably be able to fit into whatever the new administration has in mind.

What do you think about Medco Health Solutions, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Medco and UnitedHealth are Motley Fool Stock Advisor picks. UnitedHealth is also an Inside Value choice, as is Wal-Mart. Johnson & Johnson is an Income Investor selection. The Fool owns shares of UnitedHealth. The Fool's disclosure policy always gets a perfect score.