I know, this isn’t even fair. Anyone who has stepped into a Sears (NASDAQ:SHLD) store in the last few years knows the score on this one. Crumbling brick-and-mortar operations, the tarnish on once-proud store brands like Craftsman and Kenmore, and recent news that over 100 underperforming Sears and K-mart stores will be shut down.
But sometimes restructuring can work, right? After all, that sly hedgie Eddie Lampert knows a thing or two about squeezing value out of companies. . .right?
Not so much. The Sears chairman may have a name on Wall Street, but his buddies don’t seem to be cutting him any slack. To the point: 60% of analysts — more than half, and how rare is that? — rate the stock a sell. Zero rate it a buy, according to Factset.
According to Thomson/First call, the high price target for SHLD is $27. That’s a best-case scenario and below current pricing. The low is $19. That puts the median at $20 and the mean at $22.
I won’t belabor the reasons why. Sears Holdings has lost money in five of the past six quarters. Even worse: November marked a stunning 19 straight quarters of sales declines. The writing is on the wall.
So don’t be silly and bargain-hunt in Sears right now. Even the yes men on Wall Street are saying no to this dog with fleas.
Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace??.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. Jeff Reeves holds a position in Alcoa, but no other publicly traded stocks.