Why Guess? Is Ready to Rebound

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, apparel retailer Guess? has earned a respected four-star ranking.

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

Guess?facts

Headquarters (founded)

Los Angeles (1981)

Market Cap

$2.2 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$2.6 billion

Management

Co-Founder/CEO Paul Marciano

Interim CFO Nigel Kershaw

Return on Equity (average, past 3 years)

22%

Cash/Debt

$294.6 million / $11.4 million

Dividend Yield

3.1%

Competitors

Abercrombie & Fitch

Gap

Ralph Lauren


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

On CAPS, 91% of the 781 members who have rated Guess? believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Seattleldg, succinctly summed up the bull case for our community:

[Guess?] derives about half of its revenue from North America and half from overseas. Asia has been a big growth driver recently posting annual growth rates over 25%. Guess has a significant presence in Europe (especially Italy) which seems to have investors scared. However, growth in Owner Earnings paint a pretty rosy picture. The 5 year compound annual growth rate is 10% while the 10 year growth rate is 22%. With ... [little debt] and a 3.1% dividend yield, [Guess?] offers a huge margin of safety.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Guess? may not be your top choice.

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The article Why Guess? Is Ready to Rebound originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Guess?. The Motley Fool owns shares of 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 Motley Fool has a disclosure policy.

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