Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, teen apparel retailer Aeropostale (NYSE: ARO) has earned a respected four-star ranking.

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

Aeropostale facts

Headquarters (Founded)

New York City (1987)

Market Cap

$2 billion


Apparel stores

Trailing-12-Month Revenue

$2.3 billion


Co-CEO Thomas Johnson (since February 2010)

Co-CEO Mindy Meads (since February 2010)

Return on Equity (Average, Past 3 Years)



$297 million / $0


American Eagle Outfitters (NYSE: AEO)

Abercrombie & Fitch (NYSE: ANF)


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 90% of the 700 members who have rated Aeropostale believe the stock will outperform the S&P 500 going forward. These bulls include All-Star cibient, who is ranked in the top 10% of our community, and birder1500.

Just yesterday, cibient highlighted the stock for its rather magical qualities: "Aeropostale has been a perennial entry on the [Magic Formula Investing] screener. Shorter-term, it is oversold and trades at a steep discount to teen retailer peers. Almost $300M cash on balance sheet, no [long-term] debt."

Discount behemoth Wal-Mart Stores (NYSE: WMT) is usually the go-to retail bet in particularly difficult times. But Aeropostale's solid branding and affordable prices in the teen apparel space have made it an increasingly popular way to play the "new" economic normal. In fact, my fellow Fool Alyce Lomax recommended Aeropostale in our "11 O'Clock Stock" series last month for its industry-topping fundamentals and industry-lagging valuation. Despite growing market share at the expense of foes like Abercrombie, American Eagle, and Gap over the past few years, shares of Aeropostale are currently available at a forward P/E discount to all of them.

CAPS member birder1500 sums it up:

[Aeropostale] has a good reputation among its customer base. Even though we are in a recession, this company has been stomping the competition with its lower prices and its focus on daddies' babies and mommies' babies. Sort of a [PetSmart] for humans other pets. And the stock is cheap relative to the competition.

What do you think about Aeropostale, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Wal-Mart is a Motley Fool Inside Value pick. PetSmart is a selection of Stock Advisor. The Fool owns shares of Aeropostale and Wal-Mart. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.