4-Star Stocks Poised to Pop: Aeropostale

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, teen apparel retailer Aeropostale (NYS: ARO) has earned a respected four-star ranking.

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

Aeropostale facts

Headquarters (founded)

New York (1987)

Market Cap

$983.3 million

Industry

Apparel retail

Trailing-12-Month Revenue

$2.41 billion

Management

CEO Thomas Johnson

CFO Marc Miller

Return on Equity (average, past 3 years)

53.5%

Cash/Debt

$139.1 million / $0

Competitors

Abercrombie & Fitch (NYS: ANF)

American Eagle Outfitters (NYS: AEO)

Gap (NYS: GPS)

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

On CAPS, 94% of the 1,063 members who have rated Aeropostale believe the stock will outperform the S&P 500 going forward. These bulls include All-Star XMFSamstevens and fellow Fool Alyce Lomax (TMFLomax).

Just last week, XMFSamstevens tapped Aeropostale as a stylish bargain opportunity:

I like this entry price on what I think is a solid company. They make cool clothes that a lot of people like. I don't see a fundamental problem with this company, just a rough patch because of temporary factors.

In fact, Aeropostale currently sports a particularly paltry forward P/E of 6.2. That represents a discount to competitors such as Abercrombie (13.7), American Eagle (10.5), and Gap (9.2).

Alyce offers a cautiously optimistic take on Aeropostale:

Kind of feeling a "hold" is in order, and a wait-and-see mentality. This company performed incredibly well during the 2008/2009 economic mess (which messed with lots of retailers) so right now I'm thinking it's probably suffering more from tough comparisons than anything tremendously wrong with its business. Anyway, wanted to basically continue my green thumb while making it clear it's one to keep an eye on ... like I said, that last quarter was disappointing, and it might be rocky in the near term, too.

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!

Interested in another easy way to track Aeropostale?Add it to your watchlist.



At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Aeropostale and Gap. 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 Fool's disclosure policy always gets a perfect score.

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