Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount retailer Family Dollar Stores (NYSE:FDO) 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 Family Dollar's business and see what CAPS investors are saying about the stock right now.

Family Dollar facts 

Headquarters (Founded)

Charlotte, N.C. (1959)

Market Cap

$3.97 billion

Industry

General merchandise stores

TTM Revenue

$7.05 billion

Return on Equity (average, last three years)

18.6%

Dividend Yield

1.9%

Competitors

Dollar Tree (NASDAQ:DLTR)
Wal-Mart Stores (NYSE:WMT)

CAPS members bullish on FDO also bullish on

Johnson & Johnson (NYSE:JNJ)
Procter & Gamble (NYSE:PG)

CAPS members bearish on FDO also bearish on

Home Depot (NYSE:HD)
Palm (NASDAQ:PALM)

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

Over on CAPS, fully 350 of the 383 members who have rated Family Dollar -- some 91% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star RubberSoul61 and angusthermopylae.

Two weeks ago, RubberSoul61 tapped Family Dollar as a "Good place to shop for families looking to stretch their dollars."

In a pitch from last month, angusthermopylae follows that bullish logic and writes:

Good store for bad time. Not bad on debt, fairly good P/E. I'm seeing a lot more "recession fashion" and how-to's on living more cheaply....this company is made for these times. I do about 75% of my regular shopping there (condiments, small food, bread, milk, some clothes.) The stores should do well in hard times. As an investor, I'm betting on this: With so much bad news, FDO's financials will look comparatively Buffet-ish.

What do you think about Family Dollar, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. Wal-Mart and Home Depot are Motley Fool Inside Value picks. Johnson & Johnson is an Income Investor selection. The Fool owns shares of Procter & Gamble. The Fool's disclosure policy always gets a perfect score.