Ignore the optimists who argue that Sears is a turnaround story and value play. Here are the gory details as to why this ailing retailer is doomed. Sears Holdings (SHLD) is not a deeply discounted "value play" that's worth a roll of the dice, as some analysts contend. It's investment kryptonite and you should run in the other direction. So far this year, as Sears shares continue to tank, the retailing sector has been leading the stock market rally. After a bumpy ride at the start of the year, many of the sector's legacy bricks-and-mortar retail stocks are now enjoying a good run. Year-to-date (YTD), Walmart (WMT) is up 19.61%; Macy's (M) is up 15.67%; J.C. Penney (JCP) is up 69.52%; Costco (COST) is up 4.48%; Michael Kors Holdings (KORS) is up 24.71%; and Target (TGT) is up 4.02%. The company that's providing fierce competition to these traditional retailers, e-commerce juggernaut Amazon (AMZN) , is up 13.70% YTD. The SPDR S&P Retail ETF (XRT) is up 6.29% YTD, compared to 7.47% for the S&P 500 (SPY) . As for perennial laggard Sears Holdings, the stock is down 14.11% YTD and it's likely to fall even further, especially after the beleaguered company releases its latest operational scorecard next week. Sears is scheduled to report second-quarter earnings on Thursday, August 25 and the results are expected to be ugly. No amount of lipstick can beautify this pig. The average analyst estimate is that Sears will report a loss of $3.48 per share, compared to a loss of $2.40 per share in the same quarter a year ago. Next quarter's loss is expected to come in at $4.50, compared to a loss of $2.98 in the same year-ago quarter. For the full year, the loss is expected to reach $12.45 per share, compared to a loss of $8.94 last year. For fiscal 2017, the loss is projected to hit $11.73. The torrent of red ink at Sears is relentless, which stands in stark contrast to a second-quarter earnings season that generally has been strong for retailers. Sad fact is, many investors are rooting for Sears, against their better judgment, because they've been holding the stock for years in their 401(k)s and Individual Retirement Accounts (IRAs). But the longer they deny reality, the more money they'll lose on this doomed equity. It's time to bite the bullet on Sears and call it a day. Sears' peers have struggled to cope with the e-commerce revolution, with varying degrees of success. Notably, Walmart last week announced that it would buy e-commerce company Jet.com for $3.3 billion. With a market cap of $1.88 billion, Sears is controlled by billionaire hedge-fund manager Edward Lampert, whose efforts to beef up the company's relevance have been weak. For example, Sears last year purchased the technology behind WallyHome, a smart device that gauges changes in temperature, moisture, and humidity, alerting homeowners about potential leaks. Sears licenses the technology for the development of future Sears Connected Solutions products. Last month, Sears unveiled a next-generation WallyHome sensor that allows users to monitor doors and windows. Sears also last year initiated a new program of in-store consultations for its appliance products, called "Meet With An Expert." This year, the company expanded the program to its lawn and garden products. The upshot: These efforts are too little, too late and they've done nothing to stem plummeting sales. Sears Holdings operates in two segments: Kmart (which merged with Sears in 2005) and Sears Domestic. In April, Sears announced that it would close 68 Kmart locations and 10 Sears stores this summer, leaving Kmart and Sears with fewer than 900 and 700 stores respectively. Kmart and Sears Domestic outlets throughout the U.S. sell a wide variety of famous brand names, including Kenmore, Craftsman, Coldspot, Penske, and DieHard. But despite its bevy of beloved brands, Sears has grappled with a sharp multi-year plunge in sales and shopper traffic, forcing it to slash costs and slough off assets to buttress its cash position. Comparable store sales for Sears have declined every year since 2005, with net losses reaching a total of $8 billion since 2010. Founded in 1899 by Richard Warren Sears and Alvah Curtis Roebuck, Illinois-based Sears began life as the Sears-Roebuck mail order catalog company and started opening retail locations in 1925. Sears is an American icon and its stock graces the retirement portfolios of scores of investors. However, the digital revolution has rendered Sears a dinosaur. Shoppers perceive Sears stores as outdated and unappealing in a world where you can buy anything and have it delivered to your doorstep with the click of a mouse. In a broader market that's risky and volatile, you need to take protective measures instead of taking a flyer on "bargains" like Sears. To be sure, the broader market is overbought and investors are desperate for bargains. But when the inevitable correction occurs, Sears will be among those fundamentally flawed stocks that fall the farthest and hardest. Stay away from Sears stock; it's heading to zero.