2 Underperforming Holdings to Reduce

Wall Street analysts recommend a moderate sell rating for them

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Grupo Bimbo SAB de CV (GRBMF, Financial) and Cochlear Ltd (CHEOF, Financial) have underperformed the S&P 500 index, which is a benchmark for the US market, over the past several years.

Their dividend yields are also lower than the S&P 500, and Wall Street sell-side analysts have released a moderate sell rating for both stocks.

Grupo Bimbo SAB de CV

Shares of the Mexican producer and distributor of a broad range of bakery products have decreased by 37% in the past year, 38% in the past two years and 49% in the past three years through April 20. The stock has underperformed the S&P 500 by 36%, 30.3% and 26.6%, respectively.

Grupo Bimbo SAB de CV grants a dividend yield of 1.78% versus the S&P 500 dividend yield of 2.11%.

The stock is overestimated by the market according to the Peter Lynch chart, as its share price ($1.32 as of April 20 ) trades above the earnings line.

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The market capitalization is $6.07 billion, the price-earnings ratio is 23.64, the price-book ratio is 2 and the price-sales ratio is 0.51.

Cochlear Ltd

Shares of the Australian global provider of implantable hearing solutions have declined by 23% over the past year, 31% over the past two years and 5% over the past three years through April 20. The stock has underperformed the S&P 500 by 22%, 23.3% and 17.4%, respectively.

Cochlear Ltd grants a dividend yield of 1.17% versus the S&P 500 dividend yield of 2.11%.

The below Peter Lynch chart shows that this stock is overvalued by the market, as the share price ($95 as of April 20) trades above the earnings line.

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The market capitalization is approximately $6.8 billion, the price-earnings ratio is 36.29, the price-sales ratio is 7.76 and the price-book ratio is 13.76.

Disclosure: I have no positions in any securities mentioned.

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