Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Swiss pharmaceutical giant Novartis
With that in mind, let's take a closer look at Novartis' business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Basel, Switzerland (1895)|
|Market Cap||$137 billion|
|Trailing-12-Month Revenue||$58.8 billion|
|Management||CEO Joseph Jimenez
CFO Jonathan Symonds
|Return on Equity (Average, Past 3 Years)||15.7%|
|Cash/Debt||$5.6 billion / $23.9 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,522 members who have rated Novartis believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars clayman14 and starbucks4ever, both of whom are ranked in the top 10% of our community.
A few months ago, clayman14 succinctly summed up the Novartis bull case: "Swiss Compan[y] + Decent Yield + Pharma."
Over the past five years, Novartis has even grown its bottom line at a solid rate of 8% annually. That's faster than other drug behemoths like Merck (-4%), Pfizer (-2%), and Johnson & Johnson
CAPS All-Star starbucks4ever expands on the Novartis outperform argument:
A reasonably safe bet. [M]anagement is finished destroying value through acquisitions. ... That leaves us with a low [price-to-earnings multiple], and with speculators assuming … that with no more empire building the [earnings] will finally accrue to them. This illusion will put a floor under the price, especially when the [earnings are] stable and speculators are desperately looking for stability.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Novartis, Pfizer, and Johnson & Johnson, as well as creating a diagonal call position in Johnson & Johnson. The Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days.