Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health-care equipment maker St. Jude Medical (NYSE: STJ) has earned a respected four-star ranking.

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

St. Jude facts

Headquarters (Founded)

St. Paul, Minn. (1976)

Market Cap

$12.9 billion


Health-care equipment

Trailing-12-Month Revenue

$4.94 billion


CEO Daniel Starks (since 2004)
CFO John Heinmiller (since 1998)

Return on Equity (Average, Past 3 Years)



$667.05 million / $1.96 billion


Medtronic (NYSE: MDT)
Boston Scientific (NYSE: BSX)
Abbott Labs (NYSE: ABT)
C.R. Bard (NYSE: BCR)

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

On CAPS, 95% of the 489 members who have rated St. Jude believe the stock will outperform the S&P 500 going forward. These bulls include jsGreenmachine and thethirdchimp.

Late last month, jsGreenmachine tapped St. Jude as a healthy buyout candidate:

This stock has takeover appeal as its market cap is well below [Medtronic] but it's financials are comparable. The industry has had a few years to consolidate: so valuation wise the leaders are more ripe for the picking from other Wall Street savvy companies just now entering the field ... ie. Johnson & Johnson (NYSE: JNJ).

As a leader in cardiac-rhythm management devices, St. Jude remains of our community's highly rated plays on aging baby boomers. In fact, St. Jude's compound revenue growth over the past three years (11.9%) tops that of rivals Abbott (11.1%), Medtronic (7.7%), C.R. Bard (8.1%), and Boston Scientific (-1%). Of course, when the demographic trends run so clearly in the medical device industry's favor, CAPS member thethirdchimp thinks you really can't go wrong with any of those stocks:

Demographics around the world indicate a growing population over the age of 65 in developed countries and a richer, broader middle class in emerging markets. The demand for health care and heart-related equipment/supplies will rise substantially year over year for the next two decades. St. Jude's, as well as, [Medtronic] and [Boston Scientific], big pharm, other health-care suppliers are the right businesses at the right time. They have to be really badly managed to screw this up.

What do you think about St. Jude, 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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson is a Motley Fool Income Investor pick, and Motley Fool Options has recommended a diagonal call position on it. The Fool owns shares of Johnson & Johnson and Medtronic. Try any of our Foolish newsletter services free for 30 days.

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