Why Angie's List 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, local services review site Angie's List (NASDAQ: ANGI  ) has received the dreaded one-star ranking.

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

Angie's List facts

Headquarters (founded)	Indianapolis (1995)
Market Cap	$674.7 million
Industry	Internet software and services
Trailing-12-Month Revenue	$137.1 million
Management	Co-Founder/CEO William Oesterle Co-Founder/Chief Marketing Officer Angela Hicks
Operating Margin (average, past 3 years)	(40.2%)
Cash/Debt	$65.5 million / $14.9 million
Competitors	Facebook Google Groupon

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

On CAPS, 91% of the 293 members who have rated Angie's List believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, Yacabe, tapped Angie's List as a particularly scary opportunity:

I've got one thing to say about this company: Yikes! I'm saying it'll underperform in the next five plus years, but I'm not sure it'll be around that long. When I see "N/A" for an interest coverage ratio, I get a little worried. When I see that a company's net profits are losses and getting worse every year, I get worried. When I see that someone is trying to make money off of something offered by better sites for free. I panic.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.