Why Tilly's 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 has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Tilly's and see what CAPS investors are saying about the stock right now.
Tilly's facts
Headquarters (founded) | Irvine, Calif. (1982) |
Market Cap | $442.1 million |
Industry | Apparel retail |
Trailing-12-Month Revenue | $479.9 million |
Management | Co-Founder/Chairman/Chief Strategy Officer Hezy Shaked CEO Daniel Griesemer |
Trailing-12-Month Return on Equity | 24.2% |
Cash/Debt | $48.6 million / $3.8 million |
Competitors | Pacific Sunwear of California Urban Outfitters Zumiez |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, all 31 of the members who have rated Tilly's believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, timclaason, succinctly summed up the Tilly's bull case for our community:
I like Tilly's Price To Sales ratio. It's under 1. Combined with the P/E ratio under 20, current ratio over 2, low debt levels, decent profit margin, and its current place in 52 week price range, I think it's a good buy. ...
From a technical perspective, it recently had a double bottom in January and April, and its price has been going up since April. ... So, in real life, I don't think now is the *best* entry point, but given the quality fundamentals, I think one could make dumber decisions than TLYS in the $15-$16 range.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Tilly's 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 Tilly's Is Poised to Outperform 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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