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Why Smith & Nephew Will Outperform in 2013

Monday - 12/31/2012, 4:40pm  ET

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, British medical technology company Smith & Nephew has earned a coveted five-star ranking.

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

Smith & Nephew facts

Headquarters (founded)

London (1856)

Market Cap

$9.8 billion


Health care equipment

Trailing-12-Month Revenue

$4.2 billion


CEO Olivier Bohuon (since 2011)
CFO Adrian Hennah (since 2006)

Return on Equity (average, past 3 years)



$445.0 million / $69.0 million

Dividend Yield



Johnson & Johnson

Zimmer Holdings

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

On CAPS, 92% of the 125 members who have rated Smith & Nephew believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, dreamjob, succinctly summed up the bull case for our community:

Management at [Smith & Nephew] has achieved very strong [return on invested capital] and Cash ROIC numbers. Sales, earnings, and book value are all growing at a healthy clip. There are positive, stable, and growing owner earnings and free cash flow. There is also manageable debt here. I believe this is priced slightly below intrinsic value. I also like that this has recently become a 5 Star CAPS stock.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Smith & Nephew may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

This article was originally published as Why Smith & Nephew Will Outperform in 2013on

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