Thursday, August 1, 2013

Why Merck 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 behemoth Merck (NYSE: MRK  ) has earned a respected four-star ranking.

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

Merck facts

Headquarters (founded)

Whitehouse Station, N.J. (1891)

Market Cap

$146.6 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$46.2 billion

Management

Chairman/CEO Kenneth Frazier
CFO Peter Kellogg

Return on Equity (average, past 3 years)

8.7%

Cash / Debt

$16.0 billion / $20.8 billion

Dividend Yield

3.5%

Competitors

GlaxoSmithKline
Novartis
Pfizer

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

On CAPS, 93% of the 2,928 members who have rated Merck believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star joryko, succinctly summed up the Merck bull case for our community:

Long-term outperform for a steady Eddie in a strong industry.

-Incredibly strong drug pipeline
-3.6% [dividend yield]
-Broad demographic shift toward more demand for their goods
-Somewhat expensive, but justified, as it is a great defensive selection

5+ year outperform as Merck looks to reinvigorate its sales with 6 quality drugs in its pipeline.

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