4-Star Stocks Poised to Pop: PriceSmart
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, PriceSmart (NAS: PSMT) , which operates warehouse-shopping clubs in Latin America and the Caribbean, has earned a respected four-star ranking.
With that in mind, let's take a closer look at PriceSmart's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Diego (1994)|
|Market Cap||$2.24 billion|
|Industry||Hypermarkets and super-centers|
|Trailing-12-Month Revenue||$1.63 billion|
CEO Jose Laparte (since 2010)
CFO John Heffner (since 2004)
|Return on Capital (Average, Past 3 Years)||16.4%|
|Cash/Debt||$65.8 million / $73.2 million|
|Competitors||Wal-Mart (NYS: WMT)|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 261 members who have rated PriceSmart believe the stock will outperform the S&P 500 going forward. These bulls include MajorBob04 and All-Star gtfann, who is ranked in the top 1% of our community.
Late last month, MajorBob04 tapped PriceSmart as a safe way to go for growth: "Slowly but steadily growing in the [L]atin [A]merican market like Costco [ (NAS: COST) ] in the North American market. The leadership includes experienced warehouse store managers and their growth plans are not explosive, but reasonable so that costs don't get out of control."
Over the past five years, in fact, PriceSmart has grown its top line at a solid rate of 18.1% annually. That's much faster than big-box retailers like Wal-Mart (5.5%), Costco (8.1%), and Target (NYS: TGT) (4.3%).
CAPS All-Star gtfann elaborates on the bull case:
As long as major U.S. club operators (Costco and Sam's) stay out of PriceSmart's small markets in Central America and the Caribbean, it will continue to win against local and regional competition:
- Best retail operating practices
- One-stop shopping in a modern U.S.-style warehouse club
- Broad array of U.S. and local merchandise at wholesale prices
- Highly efficient distribution system for U.S. product importation
What do you think about PriceSmart, 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 trackPriceSmart?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. Motley Fool newsletter services have recommended buying shares of PriceSmart, Costco, and Wal-Mart, as well as creating a diagonal call position in Wal-Mart. The Fool owns shares of Costco and Wal-Mart. 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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