Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, women's clothing retailer Chico's FAS (NYSE:CHS) has received a distressing two-star ranking. While one-star stocks have been the worst performers, our data has shown that two-star stocks still lag the market by a significant margin and should be approached with caution; conversely, highly rated stocks have outperformed the S&P.

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

Chico's facts

Headquarters (founded)

Fort Myers, Fla. (1983)

Market Cap

$643.57 million


Apparel Retail

TTM Revenue

$1.62 billion


CEO David Dyer (newly appointed)

CFO Kent Kleeberger

Return on Equity (average, last five years and TTM)

20.3% and 0.1%


Ann Taylor (NYSE:ANN)

Talbots (NYSE:TLB)

CAPS members bearish on CHS also bearish on:

General Motors (NYSE:GM),

Citigroup (NYSE:C)

CAPS members bullish on CHS also bullish on:

American Eagle Outfitters (NYSE:AEO),

Starbucks (NASDAQ:SBUX)

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

Over on CAPS, some 23% of the 151 All-Star members who have rated Chico's believe the stock will underperform the S&P 500 going forward. Among the bearish population are srk85, who is ranked in the top 5% of our community, and MsPrudence.

Three weeks ago, srk85 tapped Chico's as a high-priced, no-growth stock: "Very poor valuation with virtually no earnings expected over the next few years."

In a pitch from December, MsPrudence approaches Chico's from a consumer's perspective (and comes away just as bearish):

I have lots of Chico's clothing in my wardrobe. But with the economy in the doldrums, I'm not buying more of any type of clothing until things improve. Chico's clothing is expensive when it's not on sale, and there's lots of competition out there from Coldwater Creek, Talbots, etc, for my wardrobe dollars. It'll be a while before babyboomers like me open up our wallets in any meaningful way.

What do you think about Chico's, 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.

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