Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer Best Buy (NYSE: BBY ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Best Buy's business and see what CAPS investors are saying about the stock right now.
Best Buy facts
||Richfield, Minn. (1966)
||Computer and electronics retail
||CEO Brian Dunn (since 2009)
CFO James Muehlbauer (since 2008)
|Return on Equity (average, past 3 years)
||$1.2 billion / $2.2 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 19% of the 3,458 members who have rated Best Buy believe the stock will underperform the S&P 500 going forward.
Earlier this year, one of those Fools, ValueOfTime, summed up the bear case for our community:
I love going in to Best Buy to slobber over all the cool things that are arriving at my doorstep tomorrow compliments of Amazon.com's free 2-day shipping. Best Buy is good for 4 things: Their comical "tech support", The show and tell that a brick-and-mortar store provides, their Geek Squad computer repair (for people who don't know how to use Google search) and the convenience of a nearby electronics store if you need a tech accessory really fast. The amount of tech-savvy people in the world will continue to increase and the amount of tech not-savvy people (e.i. Best Buy shoppers) will decrease. Now would be a good time for Best Buy to buy some of its own "black tie protection" because no warranty covers the damage this company is/will continue to suffer.
If you want to retire rich, you need to protect your portfolio from any undue risk. Luckily, we've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.