Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, home-improvement retailer The Home Depot (NYSE:HD) has received a distressing two-star ranking.

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

Home Depot facts

Headquarters (founded)

Atlanta, Ga. (1978)

Market Cap

$41.39 billion


Home-improvement stores

TTM Revenue

$71.29 billion


CEO Francis Blake (since 2007)
CFO Carol Tome (since 2001)

Net Income Growth (average, last five years and TTM)

(8.1%) and (48.6%)


Lowe's (NYSE:LOW)
Wal-Mart (NYSE:WMT)

CAPS members bearish on HD also bearish on

Microsoft (NASDAQ:MSFT)
General Electric (NYSE:GE)

CAPS members bullish on HD bullish on

General Motors (NYSE:GM)
Ford (NYSE:F)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 982 of the 3,990 members who have rated Home Depot -- some 25% -- believe the stock will underperform the S&P 500 going forward. These bears include All-Stars evilrage and rwpaules, both of whom are ranked in the top 15% of our community.

Two weeks ago, evilrage wrote that Home Depot "will likely be hurting even more because of the double whammy of reduced consumer spending and the current state of the housing market." Our All-Star concludes on an optimistic note: "When housing (and the economy) rebounds, though, this may still have a chance."

In a pitch from last month, rwpaules also predicts red returns for "The Big Orange":

I'm expecting that home improvement retailers will be the last to emerge from recession. Homeowners teetering on the brink of foreclosure are least likely to be making investments in home improvement. As the housing market turns around, and previously foreclosed renters move back into homeownership, this industry will be the last to rebound. Home Depot is a bit less attractive than Lowe's, as HD owns store property, versus Lowe's leasing strategy, making it more difficult and costly to get underperforming stores off the balance sheet. This is probably a safe long-term buy, but expecting decent short-term returns is [small-f] foolish.

What do you think about Home Depot, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 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. Home Depot, Wal-Mart, and Microsoft are Motley Fool Inside Value picks. The Fool's disclosure policy always gets a perfect score.