1-Star Stocks Poised to Plunge: Best Buy?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer Best Buy (NYS: BBY) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Best Buy's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Richfield, Minn. (1966)|
|Market Cap||$7.4 billion|
|Industry||Computer and electronics retail|
|Trailing-12-Month Revenue||$50.7 billion|
|Management||Interim CEO George Mikan (since April 2012)|
CFO James Muehlbauer (since April 2008)
|Return on Equity (average, past 3 years)||17.4%|
|Cash/Debt||$1.4 billion / $2.0 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 22% of the 3,495 members who have rated Best Buy believe the stock will underperform the S&P 500 going forward.
A couple of months ago, one of those Fools, CoreAndExplore, succinctly summed up the bear case for our community: "May get a dead cat bounce at best, otherwise the slide will continue relatively unabated due to dwindling market share (thanks to Amazon, eBay, and other online retailers) and tightening margins. Some big box stores will survive as niche players [in my opinion], but large national chains like [Best Buy] are a thing of the past."
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." 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.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Best Buy, Amazon, and Apple. Motley Fool newsletter services have recommended buying shares of Amazon, Apple, and eBay. Motley Fool newsletter services have also recommended creating a diagonal call position in Wal-Mart and a bull call spread position in Apple. 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.