Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, teen apparel retailer Abercrombie & Fitch (NYSE: ANF) has received the dreaded one-star ranking.

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

Abercrombie facts

Headquarters (Founded)

New Albany, Ohio (1892)

Market Cap

$3.4 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$3.01 billion

Management

CEO Michael Jeffries (since 1992)
CFO Jonathan Ramsden (since 2008)

Return on Equity (Average, Past 3 Years)

16.6%

Compound Annual Revenue and Net Income Growth (Over Past 3 Years)

(4%) and (51.8%)

Cash / Debt

$632.8 million / $108.9 million

1-Year Return

34%

Competitors

Aeropostale (NYSE: ARO)
Buckle (NYSE: BKE)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 2929% of the 1,132 members who have rated Abercrombie believe the stock will underperform the S&P 500 going forward. These bears include AlphaG3N3R4L and JohnMcCloy.

A few months ago, AlphaG3N3R4L highlighted the stock as all worn out:

[Abercrombie] is accurately valued for this much? Really? I just don't get it. Even though they have closed [Ruehl] and trimmed inventories, cost cutting is not a long-term growth strategy. I see [Abercrombie] most likely to lose to better priced and nimble competitors like Aeropostale, American Eagle, H&M, and Forever 21.

Over the past several quarters, Abercrombie has, in fact, experienced some of the worst same-store-sales declines in the entire retail industry. To protect its premium allure, Abercrombie was reluctant to lower prices during the downturn, giving cost-friendly rivals like Aeropostale and The Buckle the opportunity to gain significant market share ground. And while the company is finally starting to offer some modest discounts of their own, many Fools think Abercrombie's place at the high end of teen brands makes it one of the riskier retail bets out there.

In March, JohnMcCloy offered an expanded set of reasons to stay away from the stock. Here's an excerpt:

4) They were a popular clothing line a few years ago among teensters. As we all know fashions change (United Colors of Bennetton, Gap, Calvin Klein). Eventually a saturation point is reach and it becomes so cool it stops being cool. Next niche arises lead by teens who are the major consumers of this brand. ...
7) Eventually they will succumb to financial pressures and lower prices and harm margins.
8) American Eagle is a cheaper clone offer similar style.
9) Many stores are now incorporating similar styles.

Basically they have peaked for the most part. ... They will be making 25% of what they do in coming years because they falling out of style and all they have to show for it now is expenses and decaying margins.

What do you think about Abercrombie, 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!