Why Men's Wearhouse Looks Attractive Long Term

Updated

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

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

Men's Wearhousefacts

Headquarters (founded)

Houston, Texas (1973)

Market Cap

$1.8 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$2.5 billion

Management

CEO Douglass Ewert (since June 2011)

CFO Jon Kimmins (since April 2013)

10.5%

Cash/Debt

$156.1 million/$0

Dividend Yield

2%

Competitors

Jos. A Bank Clothiers


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

On CAPS, 82% of the 275 members who have rated Men's Wearhouse believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, All-Star joryko, succinctly summed up the Men's Wearhouse bull case for our community:

-50th best place to work for according to Forbes, great to see in the retail space
-strong margins and a slow and steady growth strategy
-corporate apparel turned profitable over the last year
-trades at a cheaper valuation to Jos. A. Bank and Macy's but has proven to be the safest bet of the three historically

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

To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

The article Why Men's Wearhouse Looks Attractive Long Term originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no position in any stocks mentioned. 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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