Why Orbitz Is Poised to Underperform

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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, online travel company Orbitz Worldwide has received an alarming one-star ranking.

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

Orbitz facts

Headquarters (founded)

Chicago (2000)

Market Cap

$641.2 million

Industry

Internet retail

Trailing-12-Month Revenue

$778.8 million

Management

CEO Barney Harford (since January 2009)

CFO Michael Randolfi (since March 2013)

Return on Equity (average, past 3 years)

6.1%

Cash/Debt

$130.3 million / $440.3 million

Competitors

Expedia

priceline.com


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

On CAPS, 34% of the 146 members who have rated Orbitz believe the stock will underperform the S&P 500 going forward.

A couple of months ago, one of those Fools, All-Star codyk500, succinctly summed up the Orbitz bear case for our community:

I anticipate some short term pain in this, but long term volatility on the stock, potential catalyst for a swing down in an earnings announcement, and really long term crumbling business model with some very scary potential competitors. Low barriers to entry, non-sticky customers. ... [A]rguably "fairly" priced unless you believe that a business like this is in decline. Only other risk is someone buying it, but my feeling is it would be cheaper for a potential buyer to launch their own service or buy a more market dominant.

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The article Why Orbitz Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Priceline. The Motley Fool owns shares of Priceline.com. 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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