Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, women's apparel retailer Cato
With that in mind, let's take a closer look at Cato's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Charlotte, N.C. (1946)|
|Market Cap||$800.0 million|
|Trailing-12-Month Revenue||$931.5 million|
|Management||Chairman/CEO John Derham Cato (since 1999)
CFO John Howe (since 2008)
|Return on Capital (average, past 3 years)||17.9%|
|Cash/Debt||$240.7 million / $0|
Ascena Retail Group
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 83% of the 95 members who have rated Cato believe the stock will outperform the S&P 500 going forward.
Even though the dividend yield is at 3.4%, their payout ratio based on earnings is only about 40%. The company has $240 million in cash and no debt. ...
2008 and 2009 were a little rough on the company and the company had to close quite a few stores. ... Since then, the company has stabilized a bit and seems to be back on track. The dividend will likely prevent a big drop in share price, but any news regarding growth could send this thing much higher, similar to what happened with Gap about 3 months ago.
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. Of course, despite a strong four-star rating, Cato may not be your top choice.
We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Cato. Try any of our Foolish newsletter services free for 30 days.