4-Star Stocks Poised to Pop: PriceSmart

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, PriceSmart (NAS: PSMT) has earned a respected four-star ranking. The company operates warehouse shopping clubs in Latin America and the Caribbean.

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.

PriceSmart facts

Headquarters (founded)

San Diego (1994)

Market Cap

$2.1 billion

Industry

Hypermarkets and super centers

Trailing-12-Month Revenue

$1.8 billion

Management

CEO Jose Laparte (since 2010)
CFO John Heffner (since 2004)

Return on Equity (average, past 3 years)

15.6%

Cash/Debt

$58.3 million / $77.0 million

Dividend Yield

0.9%

Competitors

Carrefour
IGA
Wal-Mart Stores

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

On CAPS, 96% of the 464 members who have rated PriceSmart believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, Stevie07, tapped the stock as a particularly tasty growth opportunity:

[PriceSmart] is growing in an emerging market area (South America). ... [PriceSmart] has been able to grow revenues, memberships, and net income each year and while increasing margins slowly. It will outperform the S&P over the long term.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Wal-Mart Stores. Motley Fool newsletter services have recommended buying shares of PriceSmart and Wal-Mart Stores, as well as creating a diagonal call position in Wal-Mart Stores. 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 Motley Fool has a disclosure policy.

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