Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pet food and products retailer PetSmart (PETM +0.00%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at PetSmart, and see what CAPS investors are saying about the stock right now.
PetSmart facts
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| |
|---|---|
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Headquarters (founded) |
Phoenix (1986) |
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Market Cap |
$7.1 billion |
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Industry |
Specialty stores |
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Management |
Chairman/CEO Robert Moran President/COO David Lenhardt |
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Return on Equity (average, past 3 years) |
23.4% |
|
Cash/Debt |
$307.2 million / $540.3 million |
|
Dividend Yield |
1% |
|
Competitors |
PETCO Animal Supplies Stores Target (TGT +3.17%) Wal-Mart Stores (WMT +2.15%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 756 members who have rated PetSmart believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, adamlevy, succinctly summed up the PetSmart bull case for our community:
In the face of increased competition from the likes of Amazon (AMZN +0.26%) and Wal-Mart, the company continues to grow faster than the pet products and services segment of retail.
[Same-store sales growth] was 7% last quarter, and I expect similar numbers this quarter. Margins continue to improve as the company focuses on high-end premium products for pet owners. The company has a competitive advantage in its pet services segment over non-specialty stores like Wal-Mart and Costco (COST +1.26%), and especially online retailers like Amazon.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, PetSmart 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 TrackPoisedTo CAPS account.
