Why Barnes & Noble Is Poised to Pull Back

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, book retailer Barnes & Noble has received the dreaded one-star ranking.

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

Barnes & Noblefacts

Headquarters (founded)

New York, N.Y. (1986)

Market Cap

$971.9 million

Industry

Specialty stores

Trailing-12-Month Revenue

$6.9 billion

Management

Founder/Chairman Leonard Riggio

President/CEO William Lynch

Return on Equity (average, past 3 years)

(7.2%)

Cash/Debt

$213.6 million/$155.8 million

Competitors

Amazon.com

Apple

Books-A-Million


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

On CAPS, 55% of the 675 members who have rated Barnes & Noble believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, adamlevy, succinctly summed up the Barnes & Noble bear case for our community: "Struggling retail segments in both brick-and-mortar and the Nook division. The only saving grace for this company is licensing content with its publishing partners, which isn't really a core part of its business model (yet)."

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The article Why Barnes & Noble Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com and Apple. 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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