Why Deutsche Bank Is Poised to Plunge
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, financial services giant Deutsche Bank has received a distressing two-star ranking.
With that in mind, let's take a closer look at Deutsche Bank and see what CAPS investors are saying about the stock right now.
Deutsche Bankfacts
Headquarters (founded) | Frankfurt am Main, Germany (1870) |
Market Cap | $44.3 billion |
Industry | Diversified capital markets |
Trailing-12-Month Revenue | $41.5 billion |
Management | Co-Chairman/Co-CEO Juergen Fitschen |
Return on Equity (average, past 3 years) | 4.9% |
Dividend Yield | 1.4% |
Competitors | CitigroupHSBC Holdings JPMorgan Chase |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 36% of the 647 members who have rated Deutsche Bank believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, rsinj, succinctly summed up the Deutsche Bank bear case for our community:
Wildly overvalued. Questionable dealings. Surely involved with LIBOR scandal. ... Embarking on a multi-year plan to reduce costs, when they have to expend $4 billion upfront. Likely they will spend more upfront, realize little of the publicized savings, and then will be 4 or 5 years down the road in to the next multi-year project to keep management entrenched and the media at bay.
This bank has more reorganizations and people changing rolls than a game of musical chairs.
It's a house of cards on a shaky foundation just waiting to crumble.
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The article Why Deutsche Bank Is Poised to Plunge originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Citigroup and JPMorgan Chase. 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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