5-Star Stocks Poised to Pop: Gordmans Stores

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount department store operator Gordmans Stores (NAS: GMAN) has earned a coveted five-star ranking.

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

Gordmans facts

Headquarters (founded)

Omaha, Neb. (1915)

Market Cap

$333.5 million

Industry

General merchandise stores

Trailing-12-Month Revenue

$574.7 million

Management

CEO Jeffrey Gordman (since 1996)
CFO Michael James (since 2006)

Trailing-12-Month Return on Equity

35.6%

Cash/Debt

$41.7 million / $521.0 thousand

Competitors

Kohl's
Macy's
Wal-Mart Stores


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

On CAPS, all 37 members who have rated Gordmans believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, JohnStuartMill, tapped Gordmans as a particularly timely opportunity:

Another business which supports the ever increasing cost conscious consumer. Discounters like [Wal-Mart], Target, and Dollar Tree are all flourishing in this environment.

Plenty of room for growth here as the revenue is only [$575 million] (ttm). The average for this industry is [$1.53 billion].

So if you believe the discounters have a foothold in this economy, [Gordmans] should be one of your picks.

If you want market-topping returns, 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 five-star rating, Gordmans 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. Motley Fool newsletter services have recommended creating a diagonal call position in 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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