2-Star Stocks Poised to Plunge: hhgregg?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty retailer hhgregg (NYSE: HGG  ) has received a distressing two-star ranking.

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

hhgregg facts

Headquarters (founded) Indianapolis (1955)
Market Cap $234.8 million
Industry Computer and electronics retail
Trailing-12-Month Revenue $2.6 billion
Management CEO Dennis May
CFO Jeremy Aguilar
Return on Equity (average, past 3 years) 20.1%
Cash/Debt $4.3 million / $0
Competitors Amazon.com
Best Buy
Wal-Mart Stores

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

On CAPS, 16% of the 318 members who have rated hhgregg believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star FourBees, succinctly summed up the bear case for our community:

H.H. Gregg sells large, high ticket items like televisions, appliances, and mattresses. This business has large entrenched competitors that are not going away. ... Amazon threatens to move these products to an Internet sales venue. ... All their products are purchased very infrequently by consumers, so there is no regular walk through traffic. Now same store sales are down at a time when new construction and big ticket retail is rising. This is a signal that the thesis behind these stores is flawed.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of hhgregg and Amazon. The Motley Fool owns shares of Amazon and Best Buy. 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.


Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 04, 2012, at 7:25 AM, beemersnbeers wrote:

    Help, I need somebody, (somebody who knows electronics)

    Help, not just anybody, (somebody willing to work cheap)

    Help, you know I need someone, help.

    When Gregg's was younger, before they sold out to Dennis May ,

    It never needed anybody's help in any way.

    But the good salesmen are gone, the management is manure

    So we dumbed it down, dropped the price, and opened up our doors.

    Help us if you can our stock is down

    Help us expand into your town

    Save us from Dennis, he's a clown

    Won't you please, please help me.

    And now the market has changed in many ways,

    Amazon and Walmart are the new retail craze

    Our stockholders and management feel so insecure,

    We know that we need you like we've never done before.

    Help us if you can our stock is down

    Help us expand into your town

    Save us from Dennis, he's a clown

    Won't you please, please help me.

    When Gregg's was younger, before they sold out to Dennis May,

    It never needed anybody's help in any way.

    But the good salesmen are gone, the management is manure

    So we dumbed it down, dropped the price, and opened up our doors.

    Help us if you can our stock is down

    Help us expand into your town

    Save us from Dennis, he's a clown

    Won't you please, please help me.

  • Report this Comment On October 10, 2012, at 1:23 PM, unfairlytreated wrote:

    I used to work for HH Gregg and suffered age discrimination. When I reported it to the managers i was fired. karma is something else. I wouldnt buy anything from HH Gregg

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Related Tickers

4/17/2014 4:05 PM
HGG $8.24 Up +0.25 +0.00%
hhgregg CAPS Rating: *

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