Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, handheld device accessory specialist ZAGG (Nasdaq: ZAGG) has received the dreaded one-star ranking.

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

ZAGG facts

Headquarters Salt Lake City, Utah
Market Cap $296.6 million
Industry Specialty retail
Trailing-12-Month Revenue $94.34 million
Management

Chairman/CEO Robert Pedersen, II

CFO Brandon O'Brien

Return on Equity (Average, Past 3 Years) 45.8%
Cash/Debt $1.8 million / $4.2 million
1-Year Return 405%
Competitors Apple (Nasdaq: AAPL)

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

On CAPS, 24% of the 228 members who have rated ZAGG believe the stock will underperform the S&P 500 going forward. These bears include All-Stars Rich Duprey (TMFCop) and metoo105, both of whom are ranked in the top 10% of our community.

Just last week, Rich brought a few red flags to our community's attention: "Inventories are rising faster than sales and finished goods are growing nearly five times faster than sales. Seems like a warning sign that sales growth may sputter."

In fact, ZAGG currently sports a forward P/E of 17. That represents a premium to Apple (11), whose SmartCover now competes directly with ZAGG, as well as Motorola Mobility (NYSE: MMI) (15) and Research In Motion (Nasdaq: RIMM) (4).

CAPS All-Star metoo105 elaborates on the ZAGG bear case:

Ask yourself, why is 50% of this stock's float sold short?

My guess is that pretty much everyone who has piled on short here is simply thinking about Porter's five factors and how there just aren't any moats to this business. The 50% gross margin is unbelievably high. It's even higher than Apple's 40% and Apple has monopolistic pricing (from its IP).

Competitors will finally commoditize Zagg's products. Consumers will win; Zagg will lose.

What do you think about ZAGG, 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. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple, and The Fool owns shares of it. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.