1-Star Stocks Poised to Plunge: Move?

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, online real estate services specialist Move (NAS: MOVE) has received the dreaded one-star ranking.

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

Movefacts

Headquarters (founded)Campbell, Calif. (1993)
Market Cap$304.3 million
IndustryInternet software and services
Trailing-12-Month Revenue$190.8 million
ManagementCEO Steven Berkowitz (since January 2009)
CFO Rachel Glaser (since January 2012)
Return on Capital (average, past 3 years)(0.5%)
Cash/Debt$45.3 million / $0
CompetitorsHomeGain.com
Trulia
Zillow

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

On CAPS, 45% of the 196 members who have rated Move believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, fellow Fool Justin Loiseau (TMFJLo), tapped Move as a relatively weak player in an increasingly competitive space:

I don't see Move as a threat unless it gets serious about makings its larger budget count for something. Trulia's smaller than Zillow, but it's got teeth. It's stepped up its R&D to take back some of Zillow's market share and if it can consistently increase site traffic at a faster rate, it stands to come out ahead. Otherwise, Trulia's piece of the pie will continue to shrink thanks to Zillow's ever-growing network effect. ...

I've made an "underperform" CapsCall for Move and an "outperform" CapsCall for Zillow on my Motley Fool Caps page, but I'm undecided on Trulia's ultimate success or failure.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." 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: Move? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Zillow. Motley Fool newsletter services have recommended buying shares of Zillow. 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