Why Tile Shop Is Poised to Keep Rallying

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural stone tile retailer has earned a coveted five-star ranking.

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

Tile Shopfacts

Headquarters (founded)

Plymouth, Minn. (1985)

Market Cap

$1.4 billion

Industry

Home improvement retail

Trailing-12-Month Revenue

$193.6 million

Management

Founder/CEO Robert Rucker

CFO Timothy Clayton

Trailing-12-Month Return on Capital

26.3%

Cash/Debt

$15.8 million / $68.8 million

Competitors


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

On CAPS, 98%of the 160 members who have rated Tile Shop believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, pmadiraju, explained why the stock still has plenty of room to run:

The real estate market is turning around. Assuming home prices increase over time, equity in the homes increases, and home owners will spend money upgrading homes. TTS has a veteran management team, and is poised to increase stores across the country. I should have been in TTS 4 or 5 months back. Better late than never! Strongly outperform for the next 5 years!

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Tile Shop 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 Tile Shop Is Poised to Keep Rallying originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Home Depot and Lowe's. It recommends and owns shares of Tile Shop Holdings. 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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