Why WebMD Is Poised to Pull Back

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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, health-care website operator WebMD Health has received a dreaded one-star ranking.

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

WebMDfacts

Headquarters

New York

Market Cap

$1.2 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$469.9 million

Management

CEO Cavan Redmond (since 2012)

CFO Anthony Vuolo (since 2009)

Return on Equity (average, past 3 years)

4.3%

Cash/Debt

$991.8 million / $800.0 million

Competitors

iVillage

Mayo Clinic


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

On CAPS, 34% of the 174 members who have rated WebMD believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, Motley Fool Co-Founder David Gardner (TMFSpiffyPop), succinctly summed up the underperform case for our community:

A Faker Breaker that relies upon, rather than drives, its industry's growth. Ad business, with all attendant weaknesses (including required NYC positioning, and ad culture as opposed to purpose-driven culture). Tried to sell itself in 2011, unsuccessfully. Hated on Glassdoor. Recent run-up is likely an opportunity to sell. Underperform.

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The article Why WebMD Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the 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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