2-Star Stocks Poised to Plunge: hhgregg?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty retailer hhgregg (NYSE: HGG) has received a distressing two-star ranking.
With that in mind, let's take a closer look at hhgregg's business and see what CAPS investors are saying about the stock right now.
hhgreggfacts
Headquarters (founded) | Indianapolis (1955) |
Market Cap | $234.8 million |
Industry | Computer and electronics retail |
Trailing-12-Month Revenue | $2.6 billion |
Management | CEO Dennis May |
Return on Equity (average, past 3 years) | 20.1% |
Cash/Debt | $4.3 million / $0 |
Competitors | Amazon.com |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 16% of the 318 members who have rated hhgregg believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star FourBees, succinctly summed up the bear case for our community:
H.H. Gregg sells large, high ticket items like televisions, appliances, and mattresses. This business has large entrenched competitors that are not going away. ... Amazon threatens to move these products to an Internet sales venue. ... All their products are purchased very infrequently by consumers, so there is no regular walk through traffic. Now same store sales are down at a time when new construction and big ticket retail is rising. This is a signal that the thesis behind these stores is flawed.
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