Why Guess? 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, 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.
Los Angeles (1981)
Co-Founder/Chairman Maurice Marciano
Co-Founder/CEO Paul Marciano
Return on Equity (average, past 3 years)
$335.9 million / $10.2 million
Abercrombie & Fitch
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 760 members who have rated Guess? believe the stock will outperform the S&P 500 going forward.
Yes, clothing is not exactly the most profitable business, and yes [Guess?'s] growth has been slowing, but with the sky high [return on capital], very low valuation, and two managers [whose] interests are uncommonly aligned with shareholders ... I'm going to pick [Guess?] anyway. Add in the 3% dividend yield, and the fact that [Guess?] is selling for a slight 6% discount to their Graham Number which is around $28 ... and I think you have a pretty solid long-term pick.
If you want market-beating 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 Poised to Outperform originally appeared on Fool.com.Fool contributor 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.