Why Sears Holdings Is Poised to Keep Plunging

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 and see what CAPS investors are saying about the stock right now.

Sears facts

Headquarters (Founded)

Hoffman Estates, Ill. (1899)

Market Cap

$4.6 billion

Industry

Department stores

Trailing-12-Month Revenue

$40.1 billion

Management

Chairman Edward Lampert
President/CEO Louis D'Ambrosio

Return on Equity (Average, Past 3 Years)

(16.8%)

Cash/Debt

$622.0 million / $4.0 billion

Competitors

J.C. Penney (NYSE: JCP  )
Target
(NYSE: TGT  )
Wal-Mart Stores
(NYSE: WMT  )

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

On CAPS, 36% of the 2,312 members who have rated Sears believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Seattleldg, succinctly summed up the Sears bear case for our community:

If you need some time to yourself, just go into a Sears. You usually find more salespeople than shoppers. I actually like to shop there. You can find good quality items like Lands End and Kenmore that seem to be perpetually on sale. It is a great store for bargain shoppers, but a terrible business given their earnings and margins.

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