Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics giant Sony (NYSE: SNE) has received a distressing two-star ranking.

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

Sony facts

Headquarters (Founded)

Tokyo (1946)

Market Cap

$31.9 billion


Consumer electronics

Trailing-12-Month Revenue

$80.1 billion


Chairman/CEO Howard Stringer
CFO Nobuyuki Oneda

Return on Equity (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)


1-Year Return



Philips (NYSE: PHG)
Panasonic (NYSE: PC)

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

On CAPS, 36% of the 343 All-Star members who have rated Sony believe the stock will underperform the S&P 500 going forward. These bears include HollywoodDan and mistercube, both of whom are ranked in the top 15% of our community.

Last month, HollywoodDan explained why the stock seemed one dimensional:

According to Fortune they're putting a big bet on 3-D. ... It's cool. It's got a seat at the table, but as far as it carrying the day, I don't buy it. You need to wear freaking special glasses to watch 3-D TV? I don't think so. Also, the CEO is no Steve Jobs. Mediocre stock performance is the best you can hope for here.

In a pitch from three weeks ago, mistercube wrote that the bear case all boiled down to currency risk:

I've always liked this company. I've also always wanted it to be cheaper. Now I'm concerned enough about the current global currency flux to believe [Sony] is overpriced enough (despite the recent decline) to warrant an underperform. Today's news alone has the Euro continuing to fall against the Pound, itself weaker against the U.S. Dollar, which in turn keeps softening against the Yen (apparently the haven du jour). How many yen can Sony bring home at this rate (assuming they indeed return to long-term profitability)? Whether in the Japanese currency or the ADR, I'd stay away from this one, at least in the short term.

What do you think about Sony, 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.