1-Star Stocks Poised to Plunge: Sears Holdings?

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, department store operator Sears Holdings (NAS: SHLD) has received the dreaded one-star ranking.

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

Searsfacts

Headquarters (founded)Hoffman Estates, Ill. (1899)
Market Cap$5.6 billion
IndustryDepartment stores
Trailing-12-Month Revenue$41.3 billion
ManagementChairman Edward Lampert
President/CEO Louis D'Ambrosio
Return on Equity (average, past 3 years)(13.3%)
Cash/Debt$777.0 million / $3.2 billion
CompetitorsJ.C. Penney
Target
Wal-Mart Stores

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

On CAPS, 37% of the 2,331 members who have rated Sears believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, callumturcan, succinctly summed up the Sears bear case for our community:

This is a slowly dying company. Profits have disappeared and sales are slowing. It trades at [1.19 times] book value, but it is constantly losing money. It will fall to below book value soon. It doesn't offer anything that another store couldn't sell you at a cheaper (Wal-Mart) price. No reason to go to Sears or Kmart, or own its stock.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

The article 1-Star Stocks Poised to Plunge: Sears Holdings? originally appeared on Fool.com.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners