Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer RadioShack (NYSE: RSH) has received the dreaded one-star ranking.

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

RadioShack facts

Headquarters (Founded)

Fort Worth, Texas (1899)

Market Cap

$1.5 billion


Electronics stores

Trailing-12-Month Revenue

$4.5 billion


CEO James Gooch (since May 2011)
Chief Marketing Officer Lee Applbaum (since September 2008)

Return on Equity (Average, Past 3 Years)



$326.8 million / $335.7 million

Competitors (Nasdaq: AMZN)
Best Buy (NYSE: BBY)
Wal-Mart Stores (NYSE: WMT)

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

On CAPS, 47% of the 740 members who have rated RadioShack believe the stock will underperform the S&P 500 going forward. These bears include vaderblue and A6EIntruder.

Just last month, vaderblue summed up RadioShack's bleak situation:

Poorly managed here. This stock relies on holiday sales and have a hard time now competing with Walmart, Target, Best Buy. I see a strong decline unless they sell out and or reorganize quickly.

Over the past five years, in fact, RadioShack's top line has decreased at rate of 2.6% annually. Over the same time period, rivals Amazon, Best Buy, and Wal-Mart have grown their revenues at an annual rate of 33%, 10%, and 6%, respectively.

CAPS member A6EIntruder elaborates on the bull case:

What do you call a national chain of small electronics stores that once catered to the hobbyist set and a generation of tinkerers that is now best known for selling cell phones? One more hint: this company has virtually no moat!

Radio Shack, Radio Shack. How far you have fallen. Time was it was a respectable place where you could buy diodes, pick up programming on a TRS-80, and buy first-generation rechargeable batteries. You're but a shadow of your former self. Really, bud--take a look in the mirror! It's time to freshen up and greet the day!

I can't imagine how Radio Shack could be relevant to anyone. Its one advantage is the small store footprint, but how many cell phones in a near-saturated NA market do you have to sell before you're profitable? Honestly, selling cell phones out of those carts in the mall might be more lucrative.

What do you think about RadioShack -- 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. Motley Fool newsletter services have recommended buying shares of Amazon, Best Buy, and Wal-Mart. Motley Fool newsletter services have recommended creating a diagonal call position in Wal-Mart. The Motley Fool owns shares of RadioShack, Best Buy, and Wal-Mart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.