Boasting a healthy balance sheet, viable strategy and improving operating efficiencies, Cabela's Inc. (CAB) offers investors one of the strongest growth profiles in the specialty retail industry. The company remains on course to achieve the targeted long-term return on invested capital of 12% to 14% through its next generation store format.

The new store model of standard sizes requires less capital investment, enhances store productivity and helps increase sales per square foot.

Cabela's multi-channel model facilitates consumers to purchase directly from retail stores or order products through catalog and Internet channels, and have them delivered to the retail store of their choice without incurring shipping costs. This multi-channel approach gives the company an advantage over its competitors.

The company's better-than-expected third-quarter 2010 results makes analysts optimistic about the future prospects, as evident from  the Zacks #2 Rank, which translates into a short-term ‘Buy' rating.

The company is also concentrating on alleviating its bad debt risk in the credit card business. Although, the improvement in the economy has led to a lowering of delinquencies and a decline in charge-offs but we still remain cautious and maintain a Neutral rating.