Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug company Endo Pharmaceuticals Holdings
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 | $3.89 billion |
| Industry | Pharmaceuticals |
| Trailing-12-Month Revenue | $1.6 billion |
| Management |
CEO David Holveck (since 2008) CFO Alan Levin (since 2009) |
| Return on Equity (Average, Past 3 Years) | 19.2% |
| Cash/Debt | $774.3 million / $342.3 million |
| Competitors |
Abbott Labs
Johnson & Johnson
Pfizer |
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 4thsuper and All-Star FoolSolo.
Late last year, 4thsuper brought Endo's most recent market-topping results to our community's attention: "[Earnings per share] up 36.5% over last year. Sales up 23% over last year. Beat earnings estimates by 2%. Profit margin 22%. ROE 23%."
Endo's leadership position and growth opportunities in the pain-management space continue to support its five-star CAPS rating. Over the next five years, Endo is even expected to grow its bottom line (13.7% per annum) at a much faster pace than gorilla rivals Abbott (8.9%), Johnson & Johnson (5.9%), and Pfizer (2.8%), as well as more like-sized foes such as Cephalon
CAPS All-Star FoolSolo elaborates on the bull case:
[T]he FDA approval of Fortesta a couple of weeks ago is a good sign the company is continuing to diversify and bring new products to market, which will also deliver sales and revenue growth. Their acquisition of Qualitest Pharmaceuticals for about $1.2 billion in private equity was completed on December 1st, and looks like it will help boost revenues and further enables Endo to diversify into the generics market. ...
I won't go on a limb with a price prediction, but I do believe the company will continue or slightly accelerate their growth, which should help power the stock further up the charts.
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