4-Star Stocks Poised to Pop: Staples

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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, office products retailer Staples (NAS: SPLS) has earned a respected four-star ranking.

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

Staples facts

Headquarters (founded)Framingham, Mass. (1986)
Market Cap$11.4 billion
IndustrySpecialty stores
Trailing-12-Month Revenue$25.0 billion
ManagementChairman/CEO Ronald Sargent
President/COO Michael Miles
Return on Equity (average, past 3 years)13%
Cash/Debt$1.3 billion / $2.0 billion
Dividend Yield2.7%
CompetitorsLyreco Group
Office Depot
OfficeMax

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 994 members who have rated Staples believe the stock will outperform the S&P 500 going forward.  

Just last week, one of those bulls, Clint35, highlighted Staples as a solid income opportunity:

I've liked this company for quite a while. It's pretty cheap with a decent balance sheet. ... [T]hey're raising the dividend. At this price the yield will be 2.80% when they eventually raise it again that will probably put the yield at 3% or more. I'm willing to hold it and just collect dividends.

Of course, despite its four-star rating, Staples may not be your top choice. If that's the case, we've found another stock 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 newTrackPoisedToCAPS account.

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 Staples. Motley Fool newsletter services have recommended buying shares of Staples. 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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