Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bank holding company FirstMerit (Nasdaq: FMER) has received a distressing two-star ranking.
With that in mind, let's take a closer look at FirstMerit's business and see what CAPS investors are saying about the stock right now.
FirstMerit facts
| Headquarters (Founded) | Akron, Ohio (1855) |
|---|---|
| Market Cap | $1.8 billion |
| Industry | Regional banks |
| Trailing-12-Month Revenue | $623.1 million |
| Management | Chairman/CEO Paul Greig CFO Terrence Bichsel |
| Return on Equity (Average, Past 3 Years) | 8.1% |
| Dividend Yield | 4% |
| Competitors |
Fifth Third Bancorp KeyCorp PNC Financial |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 28% of the 106 members who have rated FirstMerit believe the stock will underperform the S&P 500 going forward.
This past fall, one of those bears, DollarDaze100, touched on FirstMerit's limited upside:
[S]tock looks better than it is because previous management avoided market/sub-prime and [commercial real estate] pitfalls and competitors have been on the shoals. Current management trying to grow to appease analysts but bank is too small to have significant infrastructure to grow. ... Foray into Chicago with a gnat's presence won't move the needle. If you want safety this is it. If you want growth ... forget it.
What do you think about FirstMerit, 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!
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