2-Star Stocks Poised to Plunge: FirstMerit?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bank holding company FirstMerit (NAS: FMER) has received a distressing two-star ranking.

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

FirstMeritfacts

Headquarters (Founded)Akron, Ohio (1855)
Market Cap$1.8 billion
IndustryRegional banks
Trailing-12-Month Revenue$623.1 million
ManagementChairman/CEO Paul Greig
CFO Terrence Bichsel
Return on Equity (Average, Past 3 Years)8.1%
Dividend Yield4%
CompetitorsFifth Third Bancorp
KeyCorp
PNC Financial

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

On CAPS, 28% of the 106 members who have rated FirstMerit believe the stock will underperform the S&P 500 going forward.

This past fall, one of those bears, DollarDaze100, touched on FirstMerit's limited upside:

[S]tock looks better than it is because previous management avoided market/sub-prime and [commercial real estate] pitfalls and competitors have been on the shoals. Current management trying to grow to appease analysts but bank is too small to have significant infrastructure to grow. ... Foray into Chicago with a gnat's presence won't move the needle. If you want safety this is it. If you want growth ... forget it.

What do you think about FirstMerit, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies 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 Fool's disclosure policy always gets a perfect score.

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