Why Buckle 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, teen-oriented apparel retailer The Buckle (NYSE: BKE  ) 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

 

 

Headquarters (founded)

Kearney, Neb. (1948)

Market Cap

$2.1 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$1.1 billion

Management

President/CEO Dennis Nelson

Treasurer/Corporate Controller Thomas Heacock

Return on Equity (average, past 3 years)

38.9%

Cash/Debt

$244.7 million/$0

Dividend Yield

1.8%

Competitors

Abercrombie & Fitch (NYSE: ANF  )

American Eagle Outfitters (NYSE: AEO  )

Gap (NYSE: GPS  )

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

On CAPS, 91% of the 627 members who have rated Buckle believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, JohnCLeven, brought Buckle's solid fundamentals to our community's attention:

Extraordinary returns on capital. ROC was 42% in most recent year (off the charts) and ROC has consistently grown just about every year from 12% a decade ago to 42% today. 5 yr avg ROC is 34-35%.

EPS has grown every single year for the past 10 years. Very few companies have been able to grow this consistently. FCF/EV = 9%. Also, a 1.77% [dividend yield]. Great management as well.

Looking at [Buckle's] past growth history, I find it very unlikely that [Buckle] will not continue to grow. Even if that future growth is at lower end of estimates and historical averages, I believe [Buckle] should pan out to a solid long term investment.

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

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." 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.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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