Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, newspaper publisher Gannett (NYSE: GCI) has received a distressing two-star ranking.

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

Gannett facts

Headquarters (Founded)

McLean, Va. (1906)

Market Cap

$3.2 billion



Trailing-12-Month Revenue

$5.54 billion


CEO Craig Dubow (since 2005)

CFO Gracia Martore (since 2003)

Return on Equity (Average Past 3 Years)


1-Year Return



McClatchy (NYSE: MNI)

New York Times (NYSE: NYT)

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

On CAPS, 32% of the 415 members who have rated Gannett believe the stock will underperform the S&P 500 going forward. These bears include circaclown and OmegaSD.

Three months ago, circaclown quipped about Gannett's headwinds: "Newspapers, I'm gonna call them Legacy Media. Just like Legacy Airlines. Or people who have retired and write their autobiography and want to record the legacy of their life."

Despite its flagship newspaper, USA TODAY, most Fools feel that the secular decline of print is just too strong for Gannett to overcome. In its most recent quarter, for example, the company's net income more than doubled on successful cost-cutting initiatives. But thanks to a small drop in revenue, Mr. Market sent Gannett's shares plunging about 10%, and they have yet to recover.

Of course, that's the current plight being shared by all newspaper publishers, as the Internet continues to steadily siphon away ad dollars. Over the past three years, Gannett, McClatchy, and The New York Times have experienced an average compounded top-line decline of 12.5%.

With headwinds that powerful, CAPS member OmegaD thinks even a best-of-breeder like Gannett is a risky bet:

More on a long-term basis, I just don't see newspapers making a comeback. The main people reading newspapers anymore are business travelers, who all have BlackBerries now, and maybe retirees. Gannett does have a good reputation for managing well and may be able to keep things afloat, but in a few years, the desire for print media will be decreased too much. They're in trouble until they find a viable new line of business.

What do you think about Gannett, 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.