Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company TESARO (NASDAQ: TSRO) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at TESARO and see what CAPS investors are saying about the stock right now.
TESARO facts
|
Headquarters (founded) |
Waltham, Mass. (2010) |
|
Market Cap |
$1.3 billion |
|
Industry |
Biotechnology |
|
Trailing-12-Month EBITDA |
($63.4 million) |
|
Management |
Co-Founder/CEO Leon Moulder |
|
Trailing-12-Month Return on Equity |
(51.4%) |
|
Cash/Debt |
$198.6 million / $0 |
|
Competitors |
Merck |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 26% of the 19 members who have rated TESARO believe the stock will underperform the S&P 500 going forward.
Just today, one of those Fools, All-Star zzlangerhans, touched on the stock's seemingly unsustainable valuation:
I'm not sure how much value the street is assigning to each of Tesaro's discordant developmental drugs but I'm pretty sure the total shouldn't be over a billion bucks. Rolapitant will be competing against multiple generic antinausea drugs from the same and different classes by the time it gets approved, if it ever does. Their PARP inhibitor niraparib and ALK inhibitor TSR-011 are early in development and likewise have competition from multiple companies with more resources and better track records. Tesaro might be an interesting spec play at a [$300M] cap but over [$1.2B] it's a bloated pig ready for slaughter.
