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4-Star Stocks Poised to Pop: Steven Madden

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, footwear specialist Steven Madden (Nasdaq: SHOO  ) has earned a respected four-star ranking.

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

Steven Madden facts

Headquarters (Founded) Long Island, N.Y. (1990)
Market Cap $1.6 billion
Industry Footwear
Trailing-12-Month Revenue $849.8 million
Management

Chairman/CEO Edward Rosenfeld

CFO Arvind Dharia

Return on Equity (Average, Past 3 Years) 22.4%
Cash/Debt $111.8 million / $0
Competitors

Deckers Outdoor (Nasdaq: DECK  )

Nike (NYSE: NKE  )

Skechers USA (NYSE: SKX  )

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

On CAPS, 91% of the 228 members who have rated Steven Madden believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and All-Star gtfann, who is ranked in the top 1% of our community.

Earlier this week, robertshrestha listed several Steven Madden's positives: "Strong operating momentum, double-digit profit growth in recent quarter, solid margins, immaculate balance sheet, decent price multiples. What's not to like?!"

In fact, Steven Madden sports a cheapish forward P/E of 14.1. That represents a discount to other footwear plays like Deckers (19.0), Nike (16.6), and Skechers (17.9).

CAPS All-Star gtfann expands on the Steven Madden outperform argument:

1. Strong brand portfolio that consists of everything from private labeling for mass merchants to luxury retailers.

2. Leading footwear / accessories capability

3. Excellent recent financial performance

4. Pristine balance sheet with zero debt, 9x inventory turn, and strong cash flow generation

5. Significant growth opportunities

6. Ahead of schedule on path to achieving goal outlined last year of doubling EPS in 5 years.

What do you think about Steven Madden, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Steven Madden? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Deckers and Nike, as well as creating a bear put spread position in Deckers and a diagonal call position in Nike. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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DocumentId: 1583045, ~/Articles/ArticleHandler.aspx, 5/27/2012 11:56:51 PM

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Related Tickers

5/25/2012 4:00 PM
SHOO $40.15 Up +0.01 +0.02%
Steven Madden, Ltd… CAPS Rating: *****
SKX $17.45 Up +0.22 +1.28%
SKECHERS USA, Inc.… CAPS Rating: ****
NKE $108.79 Up +1.31 +1.22%
Nike CAPS Rating: ****
DECK $58.12 Up +2.00 +3.56%
Deckers Outdoor Co… CAPS Rating: ***

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