4-Star Stocks Poised to Pop: Guess?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, apparel retailer Guess? (NYS: GES) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Guess?'s business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Los Angeles (1981)|
|Market Cap||$2.4 billion|
|Trailing-12-Month Revenue||$2.7 billion|
|Management||CEO Paul Marciano (since 2007)|
CFO Dennis Secor (since 2006)
|Return on Equity (average, past 3 years)||24.9%|
|Cash/Debt||$490 million/$11.8 million|
|Competitors||Abercrombie & Fitch|
Sources: S&P Capital IQ; Motley Fool CAPS.
On CAPS, 91% of the 714 members who have rated Guess? believe the stock will outperform the S&P 500 going forward.
Although Guess has achieved >10% revenue and [free cash flow] growth over the past decade, its European exposure has become the only thing many are paying attention to. Even with a severely dinged European segment, [Guess?] generates a ton of cash. It has protected its brand sufficiently and maintained [relevance] for more than 30 years. Led by passionate owner-managers, I suspect the brand will make a run at another 30.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Guess. Motley Fool newsletter services have recommended writing covered calls on Guess. 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.