Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power-tool maker Black & Decker (NYSE: BDK) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Black & Decker's business and see what CAPS investors are saying about the stock right now.
Black & Decker facts
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Headquarters (Founded)
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Towson, Md. (1910)
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Market Cap
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$4.22 billion
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Industry
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Household durables
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Trailing-12-Month Revenue
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$4.85 billion
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Management
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CEO Nolan Archibald (since 1986)
CFO Stephen Reeves (since 2000)
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Compound Annual Revenue and Net Income Growth (Over Past 3 Years)
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(9.6%) and (33.7%)
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Cash/Debt
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$825.8 million / $1.7 billion
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1-Year Return
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92.1%
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Competitors
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Makita (Nasdaq: MKTAY)
Danaher (NYSE: DHR)
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CAPS Members Bearish on BDK Also Bearish on
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JPMorgan Chase (NYSE: JPM)
Sears Holdings (Nasdaq: SHLD)
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CAPS Members Bullish on BDK Also Bullish on
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General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 17% of the 271 members who have rated Black & Decker believe the stock will underperform the S&P 500 going forward. These bears include All-Star tcampbellla, who is ranked in the top 10% of our community, and topsecret09.
Late last year, tcambellla briefly mentioned that the Black & Decker bear case all boiled down to price: "Good company, just overvalued."
In a pitch from tail end of last year, topsecret09 helped hammer that bearishness home:
Stock is trading at 3 times book value, and sports a forward Price to Earnings ratio over 23. Insiders have been selling to the tune of approximately 900,000 shares since 12/11/2009, Including 677,000 by the President &CEO on December 16th and 17th..... Insiders now only hold a little over 900,000 shares total of all outstanding shares. Stock is priced for perfection going forward, and there are too many warning signs flashing right now with regard to the economy, and the stock market... If the market corrects as I think that it will very shortly, this stock has nowhere to go but down.
What do you think about Black & Decker, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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