Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, teen clothing retailer Abercrombie & Fitch (NYSE: ANF) has received the dreaded one-star ranking.

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

Abercrombie facts

Headquarters (Founded)

New Albany, Ohio (1892)

Market Cap

$6.07 billion

Industry

Apparel retail

Trailing-12-Month Revenue

$3.47 billion

Management

Chairman/CEO Michael Jeffries

CFO Jonathan Ramsden

Return on Equity (Average, Past 3 Years)

10.1%

Cash/Debt

$826.35 million / $68.57 million

Dividend Yield

1%

Competitors

Aeropostale (NYSE: ARO)

American Eagle (NYSE: AEO)

Gap (NYSE: GPS)

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

On CAPS, 30% of the 1,119 members who have rated Abercrombie believe the stock will underperform the S&P 500 going forward. These bears include PeyDaFool and Polarimetric.

Late last year, PeyDaFool wrote that the Abercrombie bear case all boiled down to price: "Low debt is nice, but P/E is unjustifiably high with this rate of ROE and ROI."

In fact, Abercrombie currently sports a particularly lofty P/E of 41.7. That represents a clear premium to that of rivals Aeropostale (10.4), American Eagle (23.0), and Gap (11.7).

CAPS member Polarimetric elaborates on the Abercrombie bear case:

As many others have stated, the P/E on this is ridiculous. Growth potential resulting from Hollister locations has already been milked to the limit. A&F's balance sheet will improve from 2008-2009, but not at the same pace as competitors. Even if retail/consumer discretionary blossoms on rising consumer confidence (which I believe it will), this company will be outpaced by more reasonably priced competitors.

What do you think about Abercrombie, 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 owns shares of Aeropostale. Try any of our Foolish newsletter services free for 30 days.

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