2-Star Stocks Poised to Plunge: Credit Suisse?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, financial services giant Credit Suisse (NYS: CS) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Credit Suisse's business and see what CAPS investors are saying about the stock right now.
Credit Suissefacts
Headquarters (founded) | Zurich (1856) |
Market Cap | $27.9 billion |
Industry | Diversified capital markets |
Trailing-12-Month Revenue | $23.8 billion |
Management | CEO Brady Dougan (since 2007) |
Return on Equity (average, past 3 years) | 10.0% |
Cash/Debt | $626.1 million / $444.6 billion |
Dividend Yield | 4.3% |
Competitors | Citigroup |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 38% of the 504 members who have rated Credit Suisse believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star MajorBob04, succinctly summed up the Credit Suisse bear case for our community:
Investment Banking and Asset Management are double-edge swords; they can contribute to hefty earnings, but they can also drive them to negative territory. Any financial service company based in Europe is going to suffer; Credit Suisse is no exception. Even if the Swiss are "neutral", they're still based in Europe, and closely tied to the success of (or on-going issues with) the Euro.
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The article 2-Star Stocks Poised to Plunge: Credit Suisse? originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Citigroup. 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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