4-Star Stocks Poised to Pop: Vera Bradley

Market-trouncing returns could be written in these stars.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Sep 16, 2012 at 12:00AM

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, stylish accessories purveyor Vera Bradley (Nasdaq: VRA) has earned a respected four-star ranking.

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

Vera Bradley facts

Headquarters (Founded) Fort Wayne, Ind. (1982)
Market Cap $908.8 million
Industry Apparel, accessories, and luxury goods
Trailing-12-Month Revenue $495.9 million
Management CEO Michael Ray
Co-Founder/Chief Creative Officer Barbara Bradley Baekgaard
Trailing-12-Month Return on Equity 49%
Cash/Debt $7.6 million / $25.4 million
Competitors Coach
Fifth & Pacific

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 94 members who have rated Vera Bradley believe the stock will outperform the S&P 500 going forward.  

This past week, one of those Fools, All-Star BuffettJunior1, succinctly summed up the Vera Bradley bull case for our community:

Almost every girl that I know owns a purse made by this company (it's a very popular product right now). The company has outstanding fundamentals and is trading at a reasonable valuation. Considering that the company is still in its early growth stage, I think this stock will perform well over the next few years.

If you want market-thumping returns, 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, Vera Bradley may not be your top choice.

We've found another stock 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 access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.