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.
Guess?facts
Headquarters (founded) | Los Angeles (1981) |
Market Cap | $2.3 billion |
Industry | Apparel retail |
Trailing-12-Month Revenue | $2.7 billion |
Management | Co-Founder/Chairman Maurice Marciano Co-Founder/CEO Paul Marciano |
Return on Equity (average, past 3 years) | 22.3% |
Cash/Debt | $335.9 million / $10.2 million |
Dividend Yield | 3.0% |
Competitors | Abercrombie & Fitch Gap Ralph Lauren |
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.
Just yesterday, one of those Fools, All-Star JohnCLeven, succinctly summed up the Guess? bull case for our community:
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.
We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
