Why Windstream Will Underperform in 2013

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, rural telecommunications company Windstream (NASDAQ: WIN  ) has received a distressing two-star ranking.

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

Windstream facts

Headquarters

Little Rock, Ark.

Market Cap

$5.1 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$5.9 billion

Management

CEO Jeffery Gardner (since 2006)

CFO Anthony Thomas (since 2009)

Return on Capital (average, past 3 years)

8.8%

Cash/Debt

$114.8 million / $9.2 billion

Dividend Yield

11.5%

Competitors

AT&T (NYSE: T  )

Sprint Nextel (NYSE: S  )

Verizon Communications (NYSE: VZ  )

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

On CAPS, 10% of the 3,846 members who have rated Windstream believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, NHWeston, succinctly summed up the Windstream bear case for our community:

I don't see happy things for this company. Their technology is behind the times, they don't do anything others don't do better, their dividend is probably unsustainable, and I can't see them being bought out until they ratched down to yard sale level. Worrisome.

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Read/Post Comments (2) | Recommend This Article (4)

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 December 27, 2012, at 6:52 PM, sosowong wrote:

    If Noah would have been selling stock in the "Ark" the only investors would have been meteorologist......until it started to rain. It does pay to understand the business where you put your investment. .

  • Report this Comment On December 31, 2012, at 4:16 PM, Len811 wrote:

    Some insider buys as these lower prices.

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