Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, teen-oriented apparel retailer The Buckle (BKE 3.71%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Buckle, and see what CAPS investors are saying about the stock right now.
Buckle facts
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|---|---|
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Headquarters (founded) |
Kearney, Neb. (1948) |
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Market Cap |
$2.1 billion |
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Industry |
Apparel retail |
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Trailing-12-Month Revenue |
$1.1 billion |
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Management |
President/CEO Dennis Nelson Treasurer/Corporate Controller Thomas Heacock |
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Return on Equity (average, past 3 years) |
38.9% |
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Cash/Debt |
$244.7 million / $0 |
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Dividend Yield |
1.8% |
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Competitors |
Abercrombie & Fitch (ANF 4.24%) American Eagle Outfitters (AEO 2.75%) Gap (GPS 0.77%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,548 members who have rated Buckle believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those bulls, Seattleldg, tapped Buckle as a rather special income opportunity:
Buckle is an outstanding yet underappreciated business that has done very well through recession and should do even better as the economy recovers....
While growth is outstanding on its own, an even bigger reason to own [Buckle] is the dividend. The widely published dividend yield of 1.8% may not seem that inspiring. However, the company routinely pays a special dividend in the 4th quarter. ... With these kind of shareholder friendly payouts, it probably comes as no surprise that there is heavy insider ownership with the Chairman owning 34% of company.
In the current market, you would expect a company like this to have a P/E in the 18-22 range. However, [Buckle] currently sports a P/E of less than 14. ... At current prices [Buckle] offers a huge margin of safety.
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