Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, floor covering maker Mohawk Industries (NYSE:MHK) has received the dreaded one-star ranking.

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

Mohawk facts

Headquarters (founded)

Calhoun, Ga. (1988)

Market Cap

$3.44 billion


Textile Industrial

TTM Revenue

$6.83 billion


CEO Jeffrey Lorberbaum (since 2001)

CFO Frank Boykin (since 2005)

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

4.3% and (37.1%)

2-Month Return



The Dixie Group

Shaw Industries

CAPS members bearish on MHK also bearish on

General Motors (NYSE:GM)

Vornado Realty Trust (NYSE:VNO) (NASDAQ:AMZN)

CAPS members bullish on MHK also bullish on

General Electric (NYSE:GE)

Johnson & Johnson (NYSE:JNJ)

Microsoft (NASDAQ:MSFT)

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

Over on CAPS, 31 of the 83 All-Star members who have rated Mohawk -- some 37% -- believe the stock will underperform the S&P 500 going forward. These bears include therailsplitter and DemonDoug, both of whom are ranked in the top 1% of our community.

Last week, therailsplitter seemed highly skeptical of the stock's recent surge:

It is actually priced quite fairly right now if it were either stable or growing, but as I anticipate negative growth the intrinsic value will decline and hence the stock price. I'm not exactly sure why there was such a run up unless hedge funds are going crazy competing against each other and a bunch of shorts got squeezed.

In a pitch from one day earlier, DemonDoug shares that contrarian sentiment:

With the absolutely insane rally in things related to housing over the past few days, I wanted to find the one stock that has gone up way, way too fast. [Mohawk] fits that bill, it is WAY overbought, its fundamentals are terrible, and while it is a good company within its industry, its main customers (homebuilder companies) are buying less and less of its products. They offered guidance that is way out of line with reality, they lost money last quarter, and even if they reduce their expenses, will it be fast enough to turn a profit over the next 2 quarters? Questionable.

One final piece of data for you to ponder:
EPS (ttm): -21.32

Does that look like a company you want to own?

What do you think about Mohawk, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 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. Johnson & Johnson is a Motley Fool Income Investor pick, Microsoft is a choice of Inside Value, and Amazon is a Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.