Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the nation's largest homebuilder, PulteGroup (NYSE: PHM), has received the dreaded one-star ranking.

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

Pulte facts

Headquarters (Founded)

Bloomfield Hills, Mich. (1956)

Market Cap

$5.1 billion



Trailing-12-Month Revenue

$4.1 billion


CEO Richard Dugas, Jr. (since 2003)

CFO Roger Cregg (since 1998)

Return on Equity (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)


Year-to-Date Return



D.R. Horton (NYSE: DHI)



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

On CAPS, 63% of the 1,224 members who have rated Pulte believe the stock will underperform the S&P 500 going forward. These bears include All-Star Seansonfire, who is ranked in the top 15% of our community, and DarthMaul09.

Just last week, Seansonfire refused to give Pulte any credit:

The homebuilders in general have/are been largely propped up by the Homebuyers tax credit. As the time closes in on the end of this tax credit we will see some horrible housing sales numbers over the next 3 months. ... I expect at least a 15% drop from here going forward overall in homebuilders, and Pulte is one of the weakest and most overbought stocks in the group.

In a pitch from three weeks earlier, DarthMaul09 was also highly bearish over Pulte's business model:

A home builder that is headquartered in [Michigan]? Isn't that where they used to make cars too?

They are a full service business, they build homes that people can't afford and then loan them the money, which won't get paid back so that the people can live in the homes at little or no cost, while the home depreciates in value. When the company finally gets back the home in foreclosure, it would be able to sell it again at a much lower price than the original building cost and land. What a great business plan!

What do you think about Pulte, 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's disclosure policy always gets a perfect score.