Why Sears Holdings Is Poised to Underperform


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 an alarming 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

$5.1 billion


Department stores

Trailing-12-Month Revenue

$40.1 billion


Chairman CEO Edward Lampert

CFO Robert Schriesheim

Return on Equity (average, past 3 years)



$622.0 million/$4.0 billion


J.C. Penney


Wal-Mart Stores

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

On CAPS, 36% of the 2,327 members who have rated Sears believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, TMFthump, succinctly summed up the underperform case for our community:

An unfortunate demise for this once proud brand, their retail business for both KMart and Sears is a complete mess. The best thing I can see happening to [Sears] is to spinoff the few remaining pieces of value. Craftsman and Kenmore could generate some interest, but there is little else left for the scavengers to pick at.

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

Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. 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 Motley Fool has a disclosure policy.

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