The following companies have underperformed the S&P 500 significantly in terms of share price growth over the past one-year, three-year and five-year periods. Furthermore, these companies are not distributing dividends.
Thus, investors may want to consider reducing their holdings in Xiaomi Corp (XIACF, Financial) and JTEKT Corp (JTEKF, Financial), as Wall Street sell-side analysts also recommended a moderate sell rating for these companies.
Xiaomi Corp
Shares of the Chinese global provider of hardware, software and internet services have declined by 12% in the past year, 32% in the past three years and 45.2% in the past five years through May 1. The stock has underperformed the S&P 500 by 8%, 50.3% and 79.5%, respectively.
The stock price traded at $1.26 per share at close on May 1 for a market cap of $31.59 billion, a price-book ratio of 2.63 and a 52-week range of $1.07 to $1.80.
The 14-day relative strength index of 38 suggests the stock is not oversold yet.
JTEKT Corp
Shares of the Japanese manufacturer and seller of auto parts have decreased by 49.4% over the past year, 55% over the past three years and 59% over the past five years through May 1. The stock has underperformed the S&P 500 by 45.4%, 73.7% and 93.3%, respectively.
Furthermore, the Peter Lynch chart suggests that this stock is overvalued by the market, as the share price ($6.58 as of May 1) trades substantially above the earnings line.
The stock has a market cap of $2.37 billion and a 52-week range of $6.58 to $13.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 Graham-Style Stocks to Consider
- 3 Stocks That Have Grown Revenue Fast
- A Potentially Undervalued Trio to Consider
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