Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online real estate marketplace operator Zillow (NAS: Z) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Zillow's business and see what CAPS investors are saying about the stock right now.
Internet software and services
Co-Founder/Chairman Richard Barton
Trailing-12-Month Return on Equity
$69.6 million / $0
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 60% of the 130 All-Star members who have rated Zillow believe the stock will underperform the S&P 500 going forward.
[I'm] curious to see how the markets react in the next few weeks to QE3 ... but the P/E on [Zillow] is off the charts ... and real discretionary income will decrease as inflation starts to rip the throats out of middle class [A]merican budgets (for those few that actually do budget). [T]his will have a deleterious effect on consumer spending. [N]ot sure how much this will affect housing, but I don't see it helping any.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." 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: Zillow? originally appeared on Fool.com.
Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of Zillow.Motley Fool newsletter serviceshave recommended buying shares of Zillow. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.