The Best Retail Stock for 2007

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Cool companies that sell cool products get lots of love.

You know the products and companies I'm talking about. First on any list would be Apple (Nasdaq: AAPL) and its iPod. And then there are the ubiquitous Treos from Palm (Nasdaq: PALM) and Blackberries from Research In Motion (Nasdaq: RIMM).

But here's the thing. Did you know that three of the market's 10 best stocks over the past 10 years are retailers, with Chico's FAS (NYSE: CHS) coming in at No. 2 and American Eagle (Nasdaq: AEOS) at No. 3? Yup, that's right. And those three cool stocks mentioned above are nowhere to be found on the list. So I think it's time to show a little love to retailers. They may not be as cool as other companies, but under the right circumstances, they can be great investments.

And that's where we come in.

With help from almost 20,000 members in our Motley Fool CAPS community, we want to find the best retail stock for 2007. Our search began by looking for retailers and restaurants that were recognizable within the CAPS community. Then we divided the list up into 11 retailers. From there, 11 of our best analysts will nominate their choice for the title.

Below, you'll find each analyst making his or her case. If you agree with the analyst, then rate the stock an "outperform" in CAPS. If you disagree, rate it an "underperform." And to give your rating a little extra kick, you can even add your own pitch. The retailer with the most new, net outperform ratings (outperform ratings minus underperform ratings) will win the contest.

By early next week, we'll declare a winner. Begin the quest for the best retailer for 2007 by reading the analyses below, and then click here to join CAPS to make your rating today.

• Chipotle
• Costco
• Gap
• Guitar Center
• Home Depot
• Sears Holdings
• Select Comfort
• Starbucks
• Target
• Wal-Mart
• Whole Foods

Palm and American Eagle are Motley Fool Stock Advisor selections.

Retail editor and Inside Value team member David Meier does not own shares in any of the companies mentioned. He is currently ranked 437 out of 19,864 investors in The Motley Fool's CAPS rating service. You can view his TMF profile here. The Fool takes its disclosure policy very seriously.