By Brian Pacampara, The Motley Fool
Filed under: Investing
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, video game retailer GameStop has received the dreaded one-star ranking.
With that in mind, let’s take a closer look at GameStop and see what CAPS investors are saying about the stock right now.
GameStop facts
|
Headquarters (founded) |
Grapevine, Texas (1994) |
|
Market Cap |
$3.6 billion |
|
Industry |
Computer and electronics retail |
|
Trailing-12-Month Revenue |
$8.9 billion |
|
Management |
CEO J. Paul Raines (since 2010) CFO Robert Lloyd (since 2010) |
|
Return on Equity (average, past 3 years) |
5.3% |
|
Cash/Debt |
$635.8 million / $0 |
|
Dividend Yield |
3.7% |
|
Competitors |
Amazon.com eBay Wal-Mart Stores |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 13% of the 748 All-Star members who have rated GameStop believe the stock will underperform the S&P 500 going forward.
Just last week, one of those bears, fellow Fool Jason Moser (TMFJMo), succinctly summed up the GameStop underperform case for our community:
I gave this one the red thumb on Investor Beat today. Too many stores, no real fight against digital distribution, too many headwinds, this will be a long, slow bleed. Pass.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. To learn about two retailers with especially good prospects, take a look at The Motley Fool’s special free report: “The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail.” In it, you’ll see how these two cash kings are able to consistently outperform and how they’re planning to ride the waves of retail’s changing tide. You can access it by clicking here.
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The article Why GameStop Is Poised to Pull Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and eBay. The Motley Fool owns shares of Amazon.com, eBay, and GameStop. 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 Motley Fool has a disclosure policy.
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Source: FULL ARTICLE at DailyFinance
