Please ensure Javascript is enabled for purposes of website accessibility

4-Star Stocks Poised to Pop: Columbia Sportswear

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:51PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This stock could bring market-beating returns.

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, outdoor apparel maker Columbia Sportswear (NASDAQ:COLM) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

Columbia facts

Headquarters (founded)

Portland, Ore. (1938)

Market Cap

$1.14 billion

Industry

Apparel, accessories, and luxury goods

TTM Revenue

$1.34 billion

Management

CEO Timothy Boyle (since 1988)

CFO Bryan Timm (since May 2008)

Return on Equity (average last three years)

14.9%

Dividend Yield

1.9%

Competitors

Nike (NYSE:NKE)

Timberland (NYSE:TBL)

CAPS members bullish on COLM also bullish on

Apple (NASDAQ:AAPL)

Ctrip.com International (NASDAQ:CTRP)

CAPS members bearish on COLM also bearish on

Ford Motor (NYSE:F)

Goldman Sachs (NYSE:GS)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 533 of the 579 members who have rated Columbia -- or 92% -- believe the stock will outperform the S&P 500 going forward. These bulls include mageda and bkwfool.

Last week, mageda wrote that Columbia was an apparel exception: "It seems crazy to be bull on a clothing stock nowadays, but this one's different: It has 0 debt and 66% insider ownership."

In a pitch from October, bkwfool agrees, highlighting the stock's attractive price (which is about the same now):

Very conservatively managed. ... Has been cash-flow positive every [quarter] but one for several years, and that qtr had a big writedown of [accounts receivable]. Has begun competing in Europe, where their high-quality, warm clothing should sell well. [Enterprise value / cash flow from operations] is nearly down to 4 now - screaming bargain territory. Negligible debt. Pays a nice 1.8% while you wait.

What do you think about Columbia, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started. 

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool’s own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below. 

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Columbia Sportswear and Ctrip are Motley Fool Hidden Gems picks. Apple is a Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Columbia Sportswear Company Stock Quote
Columbia Sportswear Company
COLM
$76.39 (0.22%) $0.17
Apple Inc. Stock Quote
Apple Inc.
AAPL
$172.10 (2.14%) $3.61
Ford Motor Company Stock Quote
Ford Motor Company
F
$16.18 (2.21%) $0.35
The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
GS
$353.82 (0.61%) $2.14
NIKE, Inc. Stock Quote
NIKE, Inc.
NKE
$116.07 (1.73%) $1.97
Trip.com Group Limited Stock Quote
Trip.com Group Limited
TCOM
$26.28 (1.31%) $0.34
Timberland LLC Stock Quote
Timberland LLC
TBL.DL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.