2-Star Stocks Poised to Plunge: RadioShack?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer RadioShack (NYS: RSH) has received a distressing two-star ranking.
With that in mind, let's take a closer look at RadioShack's business and see what CAPS investors are saying about the stock right now.
RadioShack facts
Headquarters (Founded) | Fort Worth, Texas (1899) |
Market Cap | $725.8 million |
Industry | Computer and electronics retail |
Trailing-12-Month Revenue | $4.5 billion |
Management | CEO James Gooch (since 2011) |
Return on Equity (Average, Past 3 Years) | 19.3% |
Cash/Debt | $667.7 million / $666.4 million |
Dividend Yield | 6.9% |
Competitors | Amazon.com |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 45% of the 805 members who have rated RadioShack believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those Fools, tompiarulli, succinctly summed up the bear case for our community:
Over the short term there it could go up a bit, simply because its taking such a pounding some might consider it undervalued.
In my opinion it would take a miracle to keep RadioShack going for another 10 years. They have failed to evolve as their competitors have, and even those competitors (like Best Buy) are in serious trouble from companies like Amazon. It may die a slow, painful death, but I don't see RadioShack going anywhere but down over the long term.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of RadioShack, Amazon, Best Buy, and Wal-Mart. Motley Fool newsletter services have recommended buying shares of Wal-Mart and Amazon, as well as creating a diagonal call position in Wal-Mart and writing covered calls in Best Buy. 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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