1-Star Stocks Poised to Plunge: The New York Times?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, multimedia news and information company The New York Times (NYS: NYT) has received the dreaded one-star ranking.

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

New York Times facts

Headquarters (founded) New York (1896)
Market Cap $944.5 million
Industry Publishing
Trailing-12-Month Revenue $2.3 billion
Management Chairman/Interim CEO/Publisher Arthur Sulzberger, Jr.
CFO James Follo
Return on Capital (average, past 3 years) 8.9%
Cash/Debt $431.4 million / $774.3 million
Competitors Gannett
News Corp.
Washington Post

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 60% of the 424 members who have rated New York Times believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, TerryHogan, succinctly summed up the bear case for our community:

I know, I know, you can't wrap your fish n' chips in an iPad, but still. This industry is in long-term decline, and they really need a new model. Maybe it will just be Bloomberg and [Thomson Reuters] in 20 years, but whatever the case, I'm not banking on newspapers to be hugely profitable unless we have a wicked solar storm that wipes out all electronics.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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.

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