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 (UNKNOWN:PETM.DL) 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



Headquarters (founded)

Phoenix (1986)

Market Cap

$7.1 billion


Specialty stores


Chairman/CEO Robert Moran

President/COO David Lenhardt

Return on Equity (average, past 3 years)



$307.2 million / $540.3 million

Dividend Yield



PETCO Animal Supplies Stores

Target (NYSE:TGT)

Wal-Mart Stores (NYSE:WMT)

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 (NASDAQ:AMZN) 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 (NASDAQ:COST), 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.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of, Costco Wholesale, and PetSmart. Motley Fool newsletter services recommend, Costco Wholesale, and PetSmart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.