Why Sears Holdings Is Poised to Keep Plunging

Brian D. Pacampara, The Motley Fool
Updated

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 has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Sears and see what CAPS investors are saying about the stock right now.

Sears facts

Headquarters (Founded)

Hoffman Estates, Ill. (1899)

Market Cap

$4.6 billion

Industry

Department stores

Trailing-12-Month Revenue

$40.1 billion

Management

Chairman Edward Lampert
President/CEO Louis D'Ambrosio

Return on Equity (Average, Past 3 Years)

(16.8%)

Cash/Debt

$622.0 million / $4.0 billion

Competitors

J.C. Penney
Target
Wal-Mart Stores


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 36% of the 2,312 members who have rated Sears believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Seattleldg, succinctly summed up the Sears bear case for our community:

If you need some time to yourself, just go into a Sears. You usually find more salespeople than shoppers. I actually like to shop there. You can find good quality items like Lands End and Kenmore that seem to be perpetually on sale. It is a great store for bargain shoppers, but a terrible business given their earnings and margins.

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The article Why Sears Holdings Is Poised to Keep Plunging originally appeared on Fool.com.

Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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