Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical giant Bristol-Myers Squibb
With that in mind, let's take a closer look at Bristol-Myers' business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||New York (1887)|
|Market Cap||$45.05 billion|
|Trailing-12-Month Revenue||$19.4 billion|
CEO Lamberto Andreotti
CFO Charles Bancroft
|Return on Equity (average, past 3 years)||19.9%|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 1,626 members who have rated Bristol-Myers believe the stock will outperform the S&P 500 going forward. These bulls include All-Star mukwonago531 49, who is ranked in the top 6% of our community, and PeyDaFool.
Just last week, mukwonago53149 tapped Bristol-Myers as a healthy income opportunity: "With a dividend around 5% and a low relative stock price vs. prior history, now is the time to buy."
Bristol-Myers' potent late-stage pipeline, solid fundamentals, and cheapish valuation continue to drive its four-star CAPS rating. In fact, the stock currently boasts a dividend yield (5%) higher than that of big pharma foes Merck (4.2%), Novartis (3.3%), and Pfizer (4.5%), as well as more diversified health giants like Johnson & Johnson
CAPS member PeyDaFool elaborates on the bull case:
This stock looks like a winner. Good dividend, impressive ROI and ROE, consistent EPS, favorable debt to equity, cash flow and sales and a necessary product line considering health care is a huge chunk of our GDP.
The payout ratio is a bit high, so I wouldn't expect to see large dividend increases in the future, but it at least appears secure.
[Bristol-Myers] should perform well in the medium to long time horizon. Sit back and collect the dividend while waiting for the stock to drift into the mid 40s.
What do you think about Bristol-Myers, 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. Pfizer is a Motley Fool Inside Value pick. Novartis is a choice of Global Gains. Johnson & Johnson is a Motley Fool Income Investor selection, and Motley Fool Options has recommended a diagonal call position on it. The Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days.
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