Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pet food and products retailer PetSmart
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.
|Headquarters (Founded)||Phoenix (1986)|
|Market Cap||$4.1 billion|
|Trailing-12-Month Revenue||$5.5 billion|
|Management||CEO Robert Moran (since 2009)
CFO Lawrence Molloy (since 2007)
|Return on Equity (Average, Past 3 Years)||18%|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
This past summer, gtucker7848 tapped PetSmart as a tasty total-return treat:
My absolute favorite retailer. Pet supplies is growing industry, and [PetSmart] is best in class by a mile. This is as close to a forever stock as you will find right now. A slow march to $50-plus and a dividend as well. Whats not to love?
While PetSmart is the clear leader in the pet supply business, it still only owns about 12% of the market, leaving plenty of growth opportunities. Its most direct rival, PetCo, sports roughly half of the market share that PetSmart does and carries substantially more debt, to boot. And although pricing pressure from discount behemoths Wal-Mart, Target, and Costco is only getting more intense, Fools believe that PetSmart's range of offerings (it also owns 17% of the pet services space) will remain unmatched.
Just last week, CAPS member thenatural24 urged Fools to fetch the bargain:
PetSmart is in strong financial shape and appears to be a good value with a PEG close to or under 1, depending on who's numbers you're using. Management is working to increase that value through earnings growth, an increasing dividend, and share repurchases.
What do you think about PetSmart, 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!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. PetSmart and Costco are Motley Fool Stock Advisor picks. Costco is also an Inside Value choice, as is Wal-Mart. The Fool owns shares of both Costco and Wal-Mart. Try any of our Foolish newsletter services free for 30 days.
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