4-Star Stocks Poised to Pop: PetSmart

Brian D. Pacampara, The Motley Fool
Updated

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

$7.7 billion

Industry

Specialty stores

Trailing-12-Month Revenue

$6.4 billion

Management

Chairman/CEO Robert Moran
President/COO David Lenhardt

Return on Equity (average, past 3 years)

23.4%

Cash/Debt

$298.7 million / $540.3 million

Dividend Yield

1.0%

Competitors

PETCO Animal Supplies Stores
Target
Wal-Mart


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

On CAPS, 94% of the 748 members who have rated PetSmart believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, MACDguy, succinctly summed up the PetSmart bull case for our community: "People love their pets and [PetSmart] is successfully marketing high end products to animal lovers. They are dominating the pet services industry and have a cheap valuation for their earnings and growth."

If you want market-thumping 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 four-star rating, PetSmart 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 theTrackPoisedToCAPS account.

The article 4-Star Stocks Poised to Pop: PetSmart originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of PetSmart. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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