4-Star Stocks Poised to Pop: Guess?

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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, apparel retailer Guess? (NYS: GES) has earned a respected four-star ranking.

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

Guess? facts

Headquarters (founded)Los Angeles (1981)
Market Cap$2.4 billion
IndustryApparel retail
Trailing-12-Month Revenue$2.7 billion
ManagementCEO Paul Marciano (since 2007)
CFO Dennis Secor (since 2006)
Return on Equity (average, past 3 years)24.9%
Cash/Debt$490 million/$11.8 million
Dividend Yield3.1%
CompetitorsAbercrombie & Fitch
Gap
Ralph Lauren

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

On CAPS, 91% of the 714 members who have rated Guess? believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, fellow Fool Bryan Hinmon (TMF42), tapped the stock as a solid bargain opportunity:

Although Guess has achieved >10% revenue and [free cash flow] growth over the past decade, its European exposure has become the only thing many are paying attention to. Even with a severely dinged European segment, [Guess?] generates a ton of cash. It has protected its brand sufficiently and maintained [relevance] for more than 30 years. Led by passionate owner-managers, I suspect the brand will make a run at another 30.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Guess? may not be your top choice.

We've found another retailer 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 Guess. Motley Fool newsletter services have recommended writing covered calls on Guess. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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