1-Star Stocks Poised to Plunge: New York Times?

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, media company New York Times (NYS: NYT) has received the dreaded one-star ranking.

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

New York Times facts

Headquarters (Founded)

New York (1896)

Market Cap

$1.0 billion

Industry

Publishing

Trailing-12-Month Revenue

$2.3 billion

Management

Chairman/Interim CEO/Publisher Arthur Sulzberger, Jr.
CFO James Follo

Return on Equity (Average, Past 3 Years)

3.7%

Cash/Debt

$263.5 million / $772.0 million

Competitors

Gannett
News Corp.
The Washington Post Company

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

On CAPS, 60% of the 440 members who have rated New York Times believe the stock will underperform the S&P 500 going forward.

Earlier this month, one of those Fools, MHenage, succinctly summed up the bear case for our community:

The New York Times still thinks it's all about selling subscriptions to newspapers. Their NYTimes app for iTunes only gives main headlines and if you want more you have to subscribe. USA Today (owned by Gannett) offers better value with its free USA Today app. In addition [New York Times] generates only about 1/10 in positive cash flow what Gannett does.

What do you think about New York Times, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

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

At the time thisarticle was published 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.

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