4-Star Stocks Poised to Pop: PetSmart
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pet food and products retailer PetSmart (NAS: PETM) has earned a respected four-star ranking.
With that in mind, let's take a closer look at PetSmart's business and see what CAPS investors are saying about the stock right now.
PetSmart facts
Headquarters (founded) | Phoenix (1986) |
Market Cap | $6.2 billion |
Industry | Specialty stores |
Trailing-12-Month Revenue | $6.1 billion |
Management | CEO Robert Moran (since 2009) |
Return on Equity (average, past 3 years) | 20.9% |
Cash/Debt | $376.3 million / $613.3 million |
Dividend Yield | 1.0% |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 722 members who have rated PetSmart believe the stock will outperform the S&P 500 going forward.
A couple of months ago, one of those bulls, NHWeston, brought a couple of PetSmart's moat-widening initiatives to our community's attention:
Okay, you know all the cliches about how many pets Americans own, the vast sums they spend on them, and that [PetsMart] has toys, food, and critters galore. What you may not know is how innovative these folks are becoming. A chain of pet hotels answers the problem of what do we do with Fido and Fluffy and Tweety when we travel and don't want to leave our animals "Home Alone". ... [PetsMart] is getting deeper into education, especially into areas of potential pet-related businesses like grooming, walking, and health. ... It's a slow grower, I admit, but they own the field.
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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. Motley Fool newsletter services have recommended buying shares of PetSmart and Wal-Mart, as well as creating a diagonal call position in Wal-Mart. The Fool owns shares of 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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