Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, weight loss specialist NutriSystem
With that in mind, let's take a closer look at NutriSystem's business and see what CAPS investors are saying about the stock right now.
NutriSystem facts
Headquarters (Founded) |
Horsham, Penn. (1972) |
Market Cap |
$964.7 million |
Industry |
Internet retail |
Trailing-12-Month Revenue |
$536.1 million |
Management |
CEO Joseph Redling (since 2008) |
Revenue and Net Income Growth (Over Past Year) |
(24.5%) and (62.1%) |
1-Year Return |
124% |
Competitors |
Weight Watchers
|
CAPS Members Bearish on NTRI Also Bearish on |
UAL |
CAPS Members Bullish on NTRI Also Bullish on |
Apple |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 11% of the 935 members who have rated NutriSystem believe the stock will underperform the S&P 500 going forward. These bears include dantheinvestor and the top-ranked member in all of CAPS, UltraLong.
Just last month, dantheinvestor questioned NutriSystem's growing presence at the big brick-and-mortars: "Retail will add more [operating expense], less recurring revenue, and lower margins. [Wal-Mart Stores
In a pitch from two days earlier, UltraLong also thought the stock was ready to drop a few pounds:
Everyone is jumping on the diabetic diet bandwagon and hooking up with Wal-Mart and [Walgreen
(NYSE:WAG) ]. Me? I'm jumping on the can't maintain a customer longer than 10 weeks bandwagon which shows a futuristic mass exodus from NutriSystem.
Look, I don't exactly deny the fact that [NutriSystem] has a fantastic balance sheet with no debt ... but they are already trading at a futuristic P/E of 20 times 2010 given double digit negative revenue growth in 2009 and high single digit revenue growth in 2010. PEG ratios above 2 in this case considering their weak customer retention history is a dooming factor.
What do you think about NutriSystem, 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!