1-Star Stocks Poised to Plunge: Sears Holdings?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, department store operator Sears Holdings (NAS: SHLD) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Sears' business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Hoffman Estates, Ill. (1899)|
|Market Cap||$5.6 billion|
|Trailing-12-Month Revenue||$41.3 billion|
|Management||Chairman Edward Lampert|
President/CEO Louis D'Ambrosio
|Return on Equity (average, past 3 years)||(13.3%)|
|Cash/Debt||$777.0 million / $3.2 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 37% of the 2,331 members who have rated Sears believe the stock will underperform the S&P 500 going forward.
This is a slowly dying company. Profits have disappeared and sales are slowing. It trades at [1.19 times] book value, but it is constantly losing money. It will fall to below book value soon. It doesn't offer anything that another store couldn't sell you at a cheaper (Wal-Mart) price. No reason to go to Sears or Kmart, or own its stock.
If you want market-thumping 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.
The article 1-Star Stocks Poised to Plunge: Sears Holdings? originally appeared on Fool.com.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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.