Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health-care giant Abbott Laboratories
With that in mind, let's take a closer look at Abbott's business and see what CAPS investors are saying about the stock right now.
Abbott facts
| Headquarters (Founded) | Abbott Park, Ill. (1888) |
| Market Cap | $82.6 billion |
| Industry | Pharmaceuticals |
| Trailing-12-Month Revenue | $36.5 billion |
| Management | Chairman/CEO Miles White (since 1999) CFO Thomas Freyman (since 2001) |
| Return on Equity (Average, Past 3 Years) | 25.3% |
| Cash/Debt | $6.5 billion / $18.8 billion |
| Dividend Yield | 3.6% |
| Competitors |
Johnson & Johnson Merck Pfizer |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 2,518 members who have rated Abbott believe the stock will outperform the S&P 500 going forward. These bulls include acegdl007 and BuffettJunior1.
Just last month, acegdl007 listed several of Abbott's positives:
Strong dividend. Good growth in dividend over time. Drug portfolio is looking good with nothing scheduled to come off patent too soon. Will be a good value play in the years to come.
Over the next five years, in fact, Abbott is expected to grow its bottom line at a solid rate of 8.5%. That's faster than other big pharma plays like Johnson & Johnson (4.7%), Merck (4.2%), and Pfizer (3%).
CAPS member BuffettJunior1 elaborates on the bull case:
On the foundation of a wide lineup of patent-protected drugs, a leading diagnostics business, a strong nutritional division, and a top-tier vascular group, Abbott Laboratories has dug a wide economic moat. I expect these operating lines will continue to generate strong returns and drive growth. ...
Overall this company has great fundamentals. Fat profit margins, high return on capital and good revenue and free cash flow growth. The management is great as well; they are really creating value for shareholders. ...
Over a 5, 10 or 20 year period this stock will definitely outperform regardless of what the economy is like. You get to buy a safe, growing company at a large discount. What's not to like?
What do you think about Abbott -- 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!
