Why PriceSmart Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, PriceSmart (NASDAQ: PSMT  ) , which operates shopping warehouse clubs in Latin America and the Caribbean, has earned a coveted five-star ranking.

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

PriceSmart facts

 

 

Headquarters (founded)

San Diego, Calif. (1994)

Market Cap

$2.2 billion

Industry

Hypermarkets and super centers

Trailing-12-Month Revenue

$2.1 billion

Management

CEO Jose Laparte (since 2010)

CFO John Heffner (since 2004)

Return on Equity (average, past 3 years)

17%

Cash/Debt

$84.4 million / $82.4 million

Dividend Yield

0.8%

Competitors

Carrefour

IGA

Wal-Mart Stores (NYSE: WMT  )

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

On CAPS, 97% of the 514 members who have rated PriceSmart believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star 3Fairfield, kindly updated our community on the PriceSmart growth story:

I am encouraged by their reported 2012 growth and forward looking growth metrics for 2013. In view of strong revenue increases in existing stores in Columbia, [PriceSmart] will open three more stores in Columbia in 2013 . This expansion along with reported expected improvements in South American economic forecasts for 2013 bodes well for next year's returns. Management is happy with the very good performance of their South American stores although they see Caribbean operations not quite as rosy. Because of the steady growth seen in past quarters management continues to seek out real estate for new stores to open in 2014 in the larger metropolitan areas in Columbia and other regions where PriceSmart operates. ... I look forward to [PriceSmart] to outperform in 2013.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, PriceSmart may not be your top choice.

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