4-Star Stocks Poised to Pop: GNC Holdings

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health and wellness products retailer GNC Holdings (NYS: GNC) has earned a respected four-star ranking.

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

GNC facts

Headquarters

Pittsburgh

Market Cap

$3.7 billion

Industry

Specialty stores

Trailing-12-Month Revenue

$2.1 billion

Management

CEO Joseph Fortunato (since 2005)
CFO Michael Nuzzo (since 2008)

Trailing-12-Month Return on Equity

14.6%

Cash/Debt

$128.4 million / $901.5 million

Dividend Yield

1.3%

Competitors

Amazon.com
CVS Caremark
Walgreen

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

On CAPS, 87% of the 56 members who have rated GNC believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star Geldej, offered some consumer insight into the bull case:

The crave for society to become more healthy is on the rise. ... I am in my last year in college and whether it's my friends trying to lose weight because they are overweight or friends that are training for their next marathon, they all go to GNC. ... [S]ervice at GNC is huge, tell them what you want to do and they can give you multiple different options and actual plans to help you reach your goal. Doing the research on your own is great but you definitely feel better about what your doing when you hear it from a pro that knows about the products they're talking about. Sorry for the rambling, just so much is not known about this company, lots of stipulations or stereotypes.

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, GNC 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 thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Amazon.com. Motley Fool newsletter services have recommended buying shares of Amazon.com. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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