Why Buckle 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, teen-oriented apparel retailer The Buckle has earned a respected four-star ranking.
With that in mind, let's take a closer look at Buckle and see what CAPS investors are saying about the stock right now.
Kearney, Neb. (1948)
President/CEO Dennis Nelson
Treasurer/Corporate Controller Thomas Heacock
Return on Equity (average, past 3 years)
Abercrombie & Fitch
American Eagle Outfitters
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 627 members who have rated Buckle believe the stock will outperform the S&P 500 going forward.
Extraordinary returns on capital. ROC was 42% in most recent year (off the charts) and ROC has consistently grown just about every year from 12% a decade ago to 42% today. 5 yr avg ROC is 34-35%.
EPS has grown every single year for the past 10 years. Very few companies have been able to grow this consistently. FCF/EV = 9%. Also, a 1.77% [dividend yield]. Great management as well.
Looking at [Buckle's] past growth history, I find it very unlikely that [Buckle] will not continue to grow. Even if that future growth is at lower end of estimates and historical averages, I believe [Buckle] should pan out to a solid long term investment.
If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Buckle may not be your top choice.
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The article Why Buckle 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 The Buckle. 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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