5-Star Stocks Poised to Pop: Meridian Bioscience

Market-trouncing returns could be written in these stars.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Sep 16, 2012 at 12:00AM

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diagnostic test maker Meridian Bioscience (Nasdaq: VIVO) has earned a coveted five-star ranking.

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

Meridian Bioscience facts

Headquarters (Founded) Cincinnati (1976)
Market Cap $756.1 million
Industry Health-care supplies
Trailing-12-Month Revenue $171.2 million
Management CEO John Kraeutler (since 2008)
CFO Melissa Lueke (since 2001)
Return on Equity (Average, Past 3 Years) 21.1%
Cash/Debt $27.9 million / $0
Competitors Abbott Labs
Becton, Dickinson
Siemens Healthcare Diagnostics

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 478 members who have rated Meridian Bioscience believe the stock will outperform the S&P 500 going forward.

Earlier last week, one of those bulls, TempoAllegro, succinctly summed up the bull case for our communty:

[Meridian Bioscience] makes a range of diagnostic tests for foodborne, parasitic, viral, and other diseases that you can do at home. ...

With increasing threats to the food supply and environmental concerns such as lack of proper water for both humans and livestock, these tests will be both helpful and in greater demand in coming years.

Add to that its great balance sheet -- currently with zero debt and current ratio of over 5, plus high insider ownership, generous dividend, and 5-year projected growth in the mid-teens, and we have an excellent addition to anyone's health-oriented portfolio.  

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Meridian Bioscience may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.