Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Sears Holdings (Nasdaq: SHLD) has received the dreaded one-star ranking.

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

Sears facts

Headquarters (Founded)

Hoffman Estates, Ill. (1899)

Market Cap

$13.7 billion


Department stores

Trailing-12-Month Revenue

$44.0 billion


Interim CEO Bruce Johnson

CFO Michael Collins

Return on Equity (Average, Past 3 Years)


Compound Annual Revenue and Net Income Growth (Over Past 3 Years)

(6%) and (46%)

Price-to-Earnings (SHLD and S&P 500)

59.9 and 19.6

1-Year Return



Wal-Mart (NYSE: WMT)


Costco (Nasdaq: COST)

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

On CAPS, 30% of the 2,202 members who have rated Sears believe the stock will underperform the S&P 500 going forward. These bears include Endeavor1 and All-Star regotoguy, who is ranked in the top 2% of our community.

Two weeks ago, Endeavor1 explained why the odds seemed stacked against the stock:

The confluence of the general business model, lack of unique story, aging portfolio of everything and high valuation seem to provide a plus/minus list full of minuses against a "rising tide" story that doesn't necessarily favor them at all. I think you need to be patient, but this seems like free money down to whatever price would put the P/E in the low 20s.

In a reply pitch from last month, regotoguy also advised investors to cash out:

The core operation is not doing well. Competition is fierce, and getting stronger. The stock is selling at a very high earnings multiple. I don't like the operation or the stock price, which is in the clouds. I blame short covering, but the jury is still out. The pain will be borne by those who are greedy and don't lock in their profits.

What do you think about Sears, 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 doesn't own a position in any of the companies mentioned. Wal-Mart and Costco are Motley Fool Inside Value picks. Costco is also a selection of Stock Advisor, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.