Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online travel company Orbitz Worldwide (NYSE: OWW) has received an alarming one-star ranking.
With that in mind, let's take a closer look at Orbitz and see what CAPS investors are saying about the stock right now.
Orbitz facts
Headquarters (founded) |
Chicago (2000) |
Market Cap |
$641.2 million |
Industry |
Internet retail |
Trailing-12-Month Revenue |
$778.8 million |
Management |
CEO Barney Harford (since January 2009) CFO Michael Randolfi (since March 2013) |
Return on Equity (average, past 3 years) |
6.1% |
Cash/Debt |
$130.3 million / $440.3 million |
Competitors |
Expedia priceline.com |
On CAPS, 34% of the 146 members who have rated Orbitz believe the stock will underperform the S&P 500 going forward.
A couple of months ago, one of those Fools, All-Star codyk500, succinctly summed up the Orbitz bear case for our community:
I anticipate some short term pain in this, but long term volatility on the stock, potential catalyst for a swing down in an earnings announcement, and really long term crumbling business model with some very scary potential competitors. Low barriers to entry, non-sticky customers. ... [A]rguably "fairly" priced unless you believe that a business like this is in decline. Only other risk is someone buying it, but my feeling is it would be cheaper for a potential buyer to launch their own service or buy a more market dominant.