1-Star Stocks Poised to Plunge: Public Storage?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, storage space provider Public Storage (NYSE: PSA  ) has received the dreaded one-star ranking.

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

Public Storage facts

Headquarters (founded) Glendale, Calif. (1971)
Market Cap $23.3 billion
Industry REIT
Trailing-12-Month Revenue $1.8 billion
Management Chairman/CEO Ronald Havner Jr.
CFO John Reyes
Return on Equity (average, past 3 years) 8.5%
Cash/Debt $160.7 million / $418.9 million
Dividend Yield 2.7%
Competitors AMERCO
Sovran Self Storage

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

On CAPS, 36% of the 273 members who have rated Public Storage believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star joryko, wrote that the Public Storage bear case all boiled down to price:

Tremendously overvalued by almost any basic valuation technique. Graham number sits at only $66 using 2012's EPS estimates. Forward P/E above 20 and 5 year PEG is 3.5

I understand that it is a relatively safe and predictable company but it has bounced up way too high, even with its dividend.

[Public Storage] might be a well run company but it will not outperform the S&P 500 at these prices.

What do you think about Public Storage, 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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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Related Tickers

10/25/2016 1:09 PM
PSA $212.23 Up +0.73 +0.35%
Public Storage CAPS Rating: ***