Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pet food and products retailer PetSmart (PETM) has earned a respected four-star ranking.
With that in mind, let's take a closer look at PetSmart and see what CAPS investors are saying about the stock right now.
PetSmart facts
|
|
Headquarters (founded) |
Phoenix, Ariz. (1986) |
Market Cap |
$7.2 billion |
Industry |
Specialty stores |
Trailing-12-Month Revenue |
$6.8 billion |
Management |
CEO David Lenhardt (since June 2013) COO Joseph O'Leary (since June 2013) |
Return on Equity (average, past 3 years) |
29.1% |
Cash/Debt |
$262.1 million/$525.6 million |
Dividend Yield |
1% |
Competitors |
PETCO Animal Supplies Stores Target Wal-Mart Stores |
On CAPS, 93% of the 784 members who have rated PetSmart believe the stock will outperform the S&P 500 going forward.
A couple of months ago, one of those Fools, Gregory63, succinctly summed up the PetSmart bull case for our community:
Buying dog food over the Internet is not convenient. Now that people aren't losing their houses as often, PETM is more recession-resistant (people will cut back on a lot before they neglect the family dog). Valuation isn't too high (not quite a value stock), dividend growth is good, growth rate is good, largest pet retailer. If it goes lower, I will buy more. Long-term play.