Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pet food and products retailer PetSmart (NASDAQ:PETM) has earned a respected four-star ranking.

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

PetSmart facts

Headquarters (founded)

Phoenix, Ariz. (1986)

Market Cap

$2.53 billion


Specialty Stores

TTM Revenue

$5.25 billion


President/CEO Robert Moran

CFO Lawrence Molloy

Return on Equity (average, last five years)


Dividend Yield



Wal-Mart Stores (NYSE:WMT)

Target (NYSE:TGT)

CAPS members bullish on PETM also bullish on


Johnson & Johnson (NYSE:JNJ)

CAPS members bearish on PETM also bearish on

Ford Motor (NYSE:F)

Bank of America (NYSE:BAC)

Sources: Capital IQ, a division of Standard & Poor's, Yahoo! Finance, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 583 of the 627 members who have rated PetSmart -- some 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include nwjim2004 and All-Star TSIF, who is ranked in the top 1% of our community.

Two weeks ago, nwjim2004 hoped that the stock would lie down for a second: "People love their pets. Company has a moderated growth rate and solid management. May have to wait for it to drop a bit in price but it is a great long-term stock."

Yesterday, of course, Fools may have gotten the correction they were waiting for. TSIF explains:

I do like to dive a little bit into companies with large one day price changes, (both up and down) and see what's going on. … In the case of PetSmart, here in the dog days of summer, it appears to me that that Mr. Market has over reacted to analysts. … PetSmart is only "guilty" of realistic forecasting which many companies chose to avoid and for which Mr. Market suddenly jumps off a cliff. Unlike many retailers, PetSmart continues to grow revenue, even in this recession. Christmas is still a ways off and PetSmart's business is cyclical, as with most retailers. As such, a buy now could be a boom come the end of January as Fido gets his new sweater. Good margins, solid cash on hand compared to debt, increasing Qtr/Qtr sales.

What do you think about PetSmart, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. PetSmart and Apple are Motley Fool Stock Advisor selections, Wal-Mart is a choice of Inside Value, and Johnson & Johnson is an Income Investor pick. The Fool's disclosure policy always gets a perfect score.