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2-Star Stocks Poised to Plunge: Polo Ralph Lauren?

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, apparel maker Polo Ralph Lauren (NYSE: RL  ) has received a distressing two-star ranking.

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

Polo Ralph Lauren facts

Headquarters (founded)

New York, New York (1967)

Market Cap

$3.81 billion

Industry

Apparel, Accessories, and Luxury Goods

TTM Revenue

$5.05 billion

Management

Chairman/CEO Ralph Lauren
President/COO Roger Farah

Net Income Growth (average, last eight quarters and most recent quarter)

11.9% and (7%)

Competitors

Liz Claiborne (NYSE: LIZ  )
Phillips-Van Heusen (NYSE: PVH  )

CAPS members bearish on RL also bearish on

Macy's (NYSE: M  )
Starbucks (Nasdaq: SBUX  )

CAPS members bullish on RL also bullish on

Altria (NYSE: MO  )
Goldman Sachs (NYSE: GS  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 27 of the 75 All-Star members who have rated Polo Ralph Lauren -- some 36% -- believe the stock will underperform the S&P 500 going forward. Among the entire bear population are mjonesy1985 and amicidelbosco.

Two days ago, mjonesy1985 tapped the stock as an untimely opportunity:

"Who has designer clothes on their mind in an economy like this? Stay away from consumer companies for a while. And don't think the rich aren't affected by the company. If that's the case then why is Saks on the verge of being a penny stock."

In a pitch from December, amicidelbosco cites heavy insider selling as the main reason not to play Polo:

The fact that Director and President/COO Roger N Farah recently sold over 470,000 shares of [Ralph Lauren] as disclosed in SEC Form 4 disclosure) creates an aura of suspicion. Furthermore, product sales in 2009 will be very soft at the malls and retail outlets as consumers lower their expenditure budgets. An indicator of what's to come is the almost failed General Growth Properties which is one of the largest US mall owners.

What do you think about Polo Ralph Lauren, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Starbucks is a Motley Fool Inside Value and Stock Advisor pick, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/14/2012 4:01 PM
RL $174.78 Up +2.41 +1.40%
Polo Ralph Lauren… CAPS Rating: **
MO $29.27 Up +0.04 +0.14%
Altria Group, Inc. CAPS Rating: ****
PVH $82.37 Up +0.33 +0.40%
Phillips-Van Heuse… CAPS Rating: ***
SBUX $49.12 Down -0.13 -0.26%
Starbucks CAPS Rating: ***
GS $112.87 Down -1.66 -1.45%
Goldman Sachs Grou… CAPS Rating: ***
LIZ $9.97 Up +0.28 +2.89%
Liz Claiborne, Inc… CAPS Rating: *
M $35.56 Down -0.24 -0.67%
Macy's, Inc. CAPS Rating: **

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