Why Fred's Is Poised to Outperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount retailer Fred's has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Fred's, and see what CAPS investors are saying about the stock right now.
Fred's facts
Headquarters (founded) | Memphis, Tenn. (1947) |
Market Cap | $479.2 million |
Industry | General merchandise stores |
Trailing-12-Month Revenue | $1.9 billion |
Management | CEO Bruce Efird (since 2009) CFO Jerry Shore (since 2000) |
Return on Equity (average, past 3 years) | 7.4% |
Cash/Debt | $16.1 million / $6.7 million |
Dividend Yield | 1.7% |
Competitors | Dollar General Walgreen Wal-Mart Stores |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 83% of the 120 members who have rated Fred's believe the stock will outperform the S&P 500 going forward.
A few months ago, one of those Fools, JohnStuartMill, succinctly summed up the Fred's bull case for our community:
This is not an ordinary discount dollar store. You can find name brands at discount prices. That's the edge they have over the competition. As with all retailers, give it a face lift, and the customers will keep coming back. And that's what they are doing with some of their stores. A new look helps people's [morale].
If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Fred's may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Fred's Is Poised to Outperform originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.
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