Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health care giant Abbott Laboratories has earned a coveted five-star ranking.

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

Abbott facts

Headquarters (founded)

Abbott Park, Ill. (1888)

Market Cap

$55.2 billion

Industry

Healthcare equipment

Trailing-12-Month Revenue

$40.0 billion

Management

Chairman/CEO Miles White (since 1999)
CFO Thomas Freyman (since 2001)

Return on Equity (average, past 3 years)

20.6%

Cash / Debt

$8.5 billion / $7.1 billion

Dividend Yield

1.6%

Competitors

Johnson & Johnson
Mead Johnson Nutrition


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

On CAPS, 97% of the 2,606 members who have rated Abbott believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star healthcarevalue, brought Abbott's solid fundamentals to our community's attention:

Price/earnings good at 10.4, reasonable market cap, Return on Invested Capital (ROIC) [13.18%] last twelve trailing months, ROIC of over [10%] going back to 2007, Low debt/equity ratio of 0.15. Abbott Laboratories has 91,000 employees and strong value in both its generic drug segment and diagnostic segments.

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

If you're looking for more long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

The article Why Abbott Labs Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. 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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