Why GlaxoSmithKline Is Poised to Pop

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug giant GlaxoSmithKline has earned a respected four-star ranking.

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

Glaxo facts

Headquarters (founded)

Brentford, U.K. (1935)

Market Cap

$106.9 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$42.8 billion

Management

CEO Andrew Witty (since 2008)
CFO Simon Dingemans (since 2011)

Return on Equity (average, past 3 years)

48.9%

Cash / Debt

$5.8 billion / $28.1 billion

Dividend Yield

5.2%

Competitors

Merck
Novartis
Pfizer


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

On CAPS, 95% of the 1,440 members who have rated Glaxo believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star PsychoDr, tapped the stock as a rather healthy income opportunity:

Healthcare industry, 5.28% [dividend yield], low dividend payout percent, history of growing dividend, pharmaceutical with a reasonable pipeline. Depressed earnings due to European crisis and a couple drugs coming off patent protection. Prognosticators are expecting flat earnings for the next two years. With a dividend reinvest position, flat earnings are fine by me. Can you say cash cow? Share acquisition time people.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Glaxo may not be your top choice.

Motley Fool co-founder David Gardner's picks have frequently trounced the market. How? Because he's always on the lookout for revolutionary stocks and recommends them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.

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

The article Why GlaxoSmithKline Is Poised to Pop originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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