Building a successful stock portfolio starts with finding great businesses. And finding great businesses requires digging through financial statements, news, and other information sources to find companies with leading growth rates, strong margins, and healthy financials.  

In our PROspecting Stocks screen, we evaluate proprietary community intelligence from the 135,000-plus investors participating in Motley Fool CAPS, as well as four key, hand-picked fundamental criteria. 

Our goal is to accelerate your research, and find the stocks that are worth a closer look. So get out your shovel and pick axe as we start digging for gold!

Coach  vs. Industry Peers

 

Coach (NYSE:COH)

Coach

Target (NYSE:TGT)

Target

Kohl's (NYSE:KSS)

Kohl's

J.C. Penney (NYSE:JCP)

J.C. Penney

CAPS Community Rating

We prefer 4-star or 5-star stocks.

 

***

 

no

 

***

 

no

 

**

 

no

 

**

 

no

CAPS 1000

We like stocks rated "outperform" by 80% of top CAPS members.

 

87.1% Outperform

 

YES

 

85.9% Outperform

 

YES

 

35.7% Outperform

 

no

 

52.9%

Outperform

 

no

Five-Year Revenue Growth

We like to see five-year revenue growth of at least 10%.

 

20.6%

 

YES

 

6.9%

 

no

 

8.3%

no

 

(1.3%)

no

Gross Margin (TTM)

We like to see gross margins of 35% or higher.

 

76.8%

YES

 

31.4%

no

 

37.4%

 

YES

 

36.3%

 

YES

Total Debt-to-Equity

A total debt-to-equity ratio of 0.50 or less gets a check.

 

0.02

 

YES

 

1.3

no

 

0.3

 

YES

 

0.8

 

no

Return on Equity

We look for a minimum of 14% return on equity.

 

40.4%

 

YES

 

15.1%

 

YES

 

12.5%

 

no

 

8.6%

no

What do you think about? If you'd like to make your own call on Coach, or post a pitch about why you think it will outperform or underperform the market, click here. Of course, you can also visit to see what other members are saying about it -- or what they are saying about more than 5,000 other stocks -- by joining us on CAPS.

Our PROspecting Stocks screen is a simplified version of the special checklist that has helped Jeff Fischer and the Pro community to find the next opportunities for the Motley Fool Pro portfolio. Learn more about Motley Fool Pro.