Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online retailer (NASDAQ:OSTK) has received the dreaded one-star ranking.

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

Overstock facts

Headquarters (founded)

Salt Lake City, Utah (1997)

Market Cap

$275.14 million


Internet Retail

Trailing-12-Month Revenue

$818.9 million


Chairman/CEO Dr. Patrick Byrne

President/Secretary Jonathan Johnson, III

Return on capital (average, last five years)


4-Month Return


Competitors (NASDAQ:AMZN)


CAPS Members Bearish on OSTK Also Bearish on

Ford Motor (NYSE:F)

Citigroup (NYSE:C)

CAPS Members Bullish on OSTK Also Bullish on


Johnson & Johnson (NYSE:JNJ)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 372 of the 432 All-Star members who have rated Overstock -- some 86% -- believe the stock will underperform the S&P 500 going forward. Among the entire bearish population are mrindependent and TSIF, both of whom are ranked in the top 10% of our community.

Just last week, mrindependent brought the stock's recent "pop" to our community's attention: "Not sure why the price popped on 6/17, but I am happy to short this at the open for the same reasons other people see. The company never makes money and it has gradually sunk to a negative book value."

In an earlier pitch from March, TSIF echoes that bearish sentiment:

Overstock’s model didn't work before there was a recession. Neg. margins, neg. ROA … Overstock's business model had an interesting premise, but the bottom line is that 98% of stores, brick OR internet are discounting like they are overstocked on everything. Any inventory that you have on the shelf is an "overstock" in this economy. Savvy shoppers expect even deeper discounts than what you would find from just being "overstocked". They want the merchants to give it to them, even if the merchant has to take a loss to sell it to them, (and some are). Overstock is only a middleman for a product that's already lost value before they receive it. It's time was never here, and soon it will be gone.

What do you think about Overstock, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 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. Amazon, eBay, and Apple are Motley Fool Stock Advisor picks. eBay is also an Inside Value recommendation. Johnson & Johnson is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score.