1-Star Stocks Poised to Plunge: Trulia?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online real-estate listing company Trulia (NYSE: TRLA  ) has received the dreaded one-star ranking.

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

Trulia facts

Headquarters (founded) San Francisco, Calif. (2005)
Market Cap $582.9 million
Industry Internet software and services
Trailing-12-Month Revenue $51.3 million
Management Co-Founder/Chairman/CEO Peter Flint
CFO Prashant Aggarwal
Trailing-12-Month Operating Margin (19.6%)
Cash/Debt $10.4 million / $10.1 million
Competitors Google
Zillow
ZipRealty

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

On CAPS, 86% of the 21 members who have rated Trulia believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bears, fellow Fool Rich Duprey (TMFCop), touched on Trulia's seemingly unsustainable valuation:

If there's money to be made these days in housing, it will be in real estate information providers like Trulia, Zillow, and CoreLogic, but ultimately they're still tied to the housing market and that is not ready to recover yet and in fact has further to fall. Trulia's 40% pop on its IPO gives a good entry point to bet on the fall.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Zillow and Google. Motley Fool newsletter services have recommended buying shares of Zillow and Google. 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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