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Alberto Abaterusso
Alberto Abaterusso
Articles (2279) 

2 Underperforming Stocks to Sell

They have fallen behind in recent years compared to the US market

January 23, 2020 | About:

Shareholders of China Vanke Co Ltd (CHVKF) and Aluminum Corporation of China Limited (NYSE:ACH) may have reason to be unhappy with their holdings.

First of all, their stocks have underperformed the S&P 500 Index in the past year and two years through Jan. 22. The S&P 500 returned 25.6% year-to-date and 20.3% over the past two years, respectively.

Second, these stocks don’t pay dividends.

Third, Wall Street recommends shareholders to soften their holdings in these two companies.

China Vanke

Shares of China Vanke Co have underperformed the S&P 500 by 7% in the past year and by 31.5% in the past two years through Jan. 22.

The Shenzhen, China-based developer and seller of properties in the People's Republic of China does not pay a dividend.

Wall Street sell-side analysts issued a moderate sell recommendation rating for this stock.

The stock had a share price of $4.35 and a market cap of $48.66 billion at close on Jan. 22.

China Vanke stock trades below the Peter Lynch earnings line as a result of the tumble the share price suffered over the past 24 months.

GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and the highest rating of 10 out of 10 for its profitability.

Aluminum Corporation of China

Shares of Aluminum Corporation of China Limited have underperformed the S&P 500 Index by 36.3% in the past year and by 71.72% in the past two years through Jan. 22.

The Beijing, China-based manufacturer and seller of alumina, primary aluminum and energy products in the People's Republic of China stopped paying dividends eight years ago.

Wall Street sell-side analysts issued a moderate sell recommendation rating for this stock.

The stock had a share price of $8.00 and a market cap of $4.77 billion at close on Jan. 22.

According to the Peter Lynch chart, the stock also looks expensive.

GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and 5 out of 10 for its profitability.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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