Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, women's apparel retailer Cato (NYSE: CATO) has earned a respected four-star ranking.

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

Cato facts

Headquarters (founded) Charlotte, N.C. (1946)
Market Cap $800.0 million
Industry Apparel retail
Trailing-12-Month Revenue $931.5 million
Management Chairman/CEO John Derham Cato (since 1999)
CFO John Howe (since 2008)
Return on Capital (average, past 3 years) 17.9%
Cash/Debt $240.7 million / $0
Dividend Yield 3.3%
Competitors Ascena Retail Group
Charming Shoppes
Deb Shoppes

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

On CAPS, 83% of the 95 members who have rated Cato believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, ElCid16, tapped Cato as a sustainable income opportunity:

Even though the dividend yield is at 3.4%, their payout ratio based on earnings is only about 40%. The company has $240 million in cash and no debt. ...

2008 and 2009 were a little rough on the company and the company had to close quite a few stores. ... Since then, the company has stabilized a bit and seems to be back on track. The dividend will likely prevent a big drop in share price, but any news regarding growth could send this thing much higher, similar to what happened with Gap about 3 months ago.

If you want to retire rich, 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 a strong four-star rating, Cato may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." 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.

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