1-Star Stocks Poised to Plunge: Sears Holdings?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, department store operator Sears Holdings (Nasdaq: SHLD  ) has received the dreaded one-star ranking.

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

Sears facts

Headquarters (founded) Hoffman Estates, Ill. (1899)
Market Cap $5.6 billion
Industry Department stores
Trailing-12-Month Revenue $41.3 billion
Management Chairman Edward Lampert
President/CEO Louis D'Ambrosio
Return on Equity (average, past 3 years) (13.3%)
Cash/Debt $777.0 million / $3.2 billion
Competitors J.C. Penney
Target
Wal-Mart Stores

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

On CAPS, 37% of the 2,331 members who have rated Sears believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, callumturcan, succinctly summed up the Sears bear case for our community:

This is a slowly dying company. Profits have disappeared and sales are slowing. It trades at [1.19 times] book value, but it is constantly losing money. It will fall to below book value soon. It doesn't offer anything that another store couldn't sell you at a cheaper (Wal-Mart) price. No reason to go to Sears or Kmart, or own its stock.

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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 Fool's disclosure policy always gets a perfect score.


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