Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, outdoor advertising company Lamar Advertising (Nasdaq: LAMR) has received the dreaded one-star ranking.

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

Lamar facts

Headquarters (Founded)

Baton Rouge, La. (1989)

Market Cap

$2.5 billion



Trailing-12-Month Revenue

$1.05 billion


CEO Kevin Reilly, Jr. (since 1989)

CFO Keith Istre (since 1989)

Return on Equity (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)



$33 million / $2.6 billion

1-Year Return



Clear Channel Outdoor (NYSE: CCO)

CBS Outdoor, a division of CBS (NYSE: CBS)

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

On CAPS, 57% of the 192 members who have rated Lamar believe the stock will underperform the S&P 500 going forward. These bears include JackCaps and All-Star mrindependent, who is ranked in the top 1% of our community.

Three months ago, JackCaps noted that Lamar "has better margins than Clear Channel Outdoor, but this industry is still very difficult."

About a week later, mrindependent expanded on that bearishness:

Lamar advertising is inexplicably trading for 3.8 times book value despite the fact that the company is currently losing money and is expected to lose more money in 2010. Amazingly, Lamar DID NOT write-off its good will during the last eighteen months even though the economy provided a nice opportunity to do so. Someday, the company will have to writedown its goodwill. Longterm ROE is approximately 1%. ... The stock currently appears in my screen for overpriced stocks that are expected to lose money in the upcoming year.

What do you think about Lamar, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.