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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, jewelry retailer Zale (NYSE: ZLC ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Zale's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Irving, Texas (1989)|
|Market Cap||$205.9 million|
|Trailing-12-Month Revenue||$1.9 billion|
|Management||CEO Theophlius Killion (since 2010)
CFO Thomas Haubenstricker (since 2011)
|Return on Capital (average, past 3 years)||(28.3%)|
|Cash/Debt||$24.6 million / $452.9 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 59% of the 258 members who have rated Zale believe the stock will underperform the S&P 500 going forward.
May be near the end of a short squeeze after an analyst upgrade "caused" a short spike, followed by a computer trading spike, followed by a bigger short spike, followed by day traders checking in… [E]xpecting a retrace as a 52 week high for [Zale], despite somewhat better earnings the last quarter is not warranted. ... October earnings usually the lowest of the year.
Metrics look deceiving, but could be why [Zale] share price stays higher than warranted. ... [L]ittle if anything gets the bottom line in this highly competitive, economically dependent industry. Short term call, expect a slow bleed back down unless the economy buoys all ships.
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