Why Regis Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hair-care salon operator Regis has earned a respected four-star ranking.

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

Regis facts

Headquarters (founded)

Edina, Minn. (1922)

Market Cap

$1.0 billion

Industry

Personalized services

Trailing-12-Month Revenue

$2.2 billion

Management

CEO Daniel Hanrahan (since 2012)

CFO Steven Spiegel (since 2012)

Return on Equity (average, past 3 years)

(5.6%)

Cash/Debt

$218.3 million/$269.0 million

Dividend Yield

1.3%

Competitors

Ratner Companies

Sport Clips

Ulta Salon, Cosmetics & Fragrance


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

On CAPS, 87% of the 87 members who have rated Regis believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star kkconway, tapped Regis as a particularly sharp turnaround opportunity: "Divestiture of Hair Club for Men asset looks like a short term catalyst, but it could be a nice play for long term growth. [I]f the new management stops the bleeding at Supercuts salons, they are off to a promising start as of last quarter ."

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Regis may not be your top choice.

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The article Why Regis Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Ulta Salon, Cosmetics & Fragrance. It also owns shares of Regis. 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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