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 (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 (1986)

Market Cap

$4.75 billion


Specialty stores

Trailing-12-Month Revenue

$5.69 billion


CEO Robert Moran (since 2009)

CFO Lawrence Molloy (since 2007)

Return on Equity (Average, Past 3 Years)



$301.66 million / $566.83 million

Dividend Yield



Costco (Nasdaq: COST)

Target (NYSE: TGT)

Wal-Mart (NYSE: WMT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 667 members who have rated PetSmart believe the stock will outperform the S&P 500 going forward. These bulls include All-Star TheGarcipian, who is ranked in the top 2% of our community, and EpiphanyStock.

Late last year, TheGarcipian tapped PetSmart as a defensive stock worth fetching:

[P]eople will skimp on lots of things during a recession, but they'll never cut out Fido's treats & minor extravagances. From personal experience if nothing else, I know that it brings daily joy to take care of a pet and, yes, even to spoil them occasionally. Big thumbs up!

Over the next five years, in fact, PetSmart is expected to grow its bottom line at a solid rate of 15% annually. That's slightly faster than retail giant rivals Costco (13.2%), Target (12.2%), and Wal-Mart (10.3%).

CAPS member EpiphanyStock elaborates on the bull case:

Petsmart has been growing the right way, with cash flow as opposed to debt. Company has grown sales & earnings ... even through the nastiest of recessions, which validates the thesis of many ... quite simply, folks will scrimp on themselves in hard times, but not their pets.

PEG is right around the magical one for a high grower with expanding margins, an astonishingly successful loyalty program, and a burgeoning services business. A back-pocket, no-brainer buy for several years.

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