5-Star Stocks Poised to Pop: PetMed Express

• Email
• Share
• Print

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nationwide pet pharmacy PetMed Express (Nasdaq: PETS) has earned a coveted five-star ranking.

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

PetMed facts

Headquarters (Founded)	Pompano Beach, Fla. (1996)
Market Cap	$371.2 million
Industry	Internet retail
Trailing-12-Month Revenue	$231.1 million
Management	CEO Menderes Akdag (since 2001) CFO Bruce Rosenbloom (since 2001)
Return on Equity (Average, Past 3 Years)	30%
Cash/Debt	$56.2 million / $0
Dividend Yield	2.5%
Other Internet Retail Alternatives	Amazon.com (Nasdaq: AMZN) eBay (Nasdaq: EBAY)
CAPS Members Bullish on PETS Also Bullish on	Apple (Nasdaq: AAPL) Johnson & Johnson (NYSE: JNJ)
CAPS Members Bearish on PETS Also Bearish on	Dell (Nasdaq: DELL) Mechel OAO (NYSE: MTL)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,355 members who have rated PetMed believe the stock will outperform the S&P 500 going forward. These bulls include my fellow Fool Rich Smith (TMFDitty) and rknapton.

Just last month, Rich singled out PetMed as a mixed-breed of powerful investing strategies: "EV/FCF/G ratio works out to 11.5. Toss in a tidy 2% dividend, and what you've got here is a case for growth, a case for value, and a case for income. That makes PetMed man's new best friend."

In a pitch from earlier this month, rknapton also encouraged Fools to fetch the opportunity:

This website where people can easily order all the pet medications, supplements, food, and whatever else they may need for their pets. Valuation wise, this is quite attractive. … AND, once again, this overstates the true price you are paying because the company has $0 debt and $56 million in cash. They've already proven investor friendly by upping their cash dividend, and I would expect with their huge cash hoard and stable earnings, that this dividend will increase further yet in the future.

What do you think about PetMed, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!