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) 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


Hypermarkets and super centers

Trailing-12-Month Revenue

$1.8 billion


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

Return on Equity (average, past 3 years)



$58.3 million / $77.0 million

Dividend Yield



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.

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. Of course, despite a strong four-star rating, PriceSmart may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." 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 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.

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