The following companies have underperformed the S&P 500 significantly, both in the short term and the long term.
Furthermore, these companies have either reduced their dividends to almost nothing or do not pay dividends.
Thus, investors may want to consider reducing their holdings in Pebblebrook Hotel Trust (PEB, Financial) and Triumph Group Inc (TGI, Financial), as these stocks have also received a moderate sell rating from Wall Street sell-side analysts.
Pebblebrook Hotel Trust
Shares of the Bethesda, Maryland-based real estate investment trust company and owner of hotels in the U.S. have declined by 63% in the past year, 68% over the past two years and 60% over the past three years through April 9. The stock has underperformed the S&P 500 index, which is a benchmark for the U.S. market, by 60%, 73% and 77%, respectively.
Pebblebrook has operated a drastic cut of 97.4% in its quarterly cash dividend to one cent per common share (payable on April 15) from the prior payment of 38 cents per common share. The stock has a forward dividend yield of 0.34%, which underperforms the S&P 500 yield of 2.14% tremendously as of April 9.
The share price ($11.41 as of April 9) has reached the lowest levels in the company's history.
The market capitalization is $1.49 billion, the price-earnings ratio is 18.11 and the price-sales ratio is 0.92. The 14-day relative strength indicator of 45 tells us that the stock is still far from oversold levels.
Triumph Group Inc
Shares of the Berwyn, Pennsylvania-based designer, manufacturer, repairer and distributor of aerostructures, aircraft components and systems worldwide have fallen by 67% in the past year, 72% in the past two years and 70% in the past three years through April 9. The stock has underperformed the S&P 500 index by 64%, 77% and 87%, respectively.
Triumph Group Inc suspended the payment of the quarterly dividend as of March 20, 2020.
The share price ($7.56 as of April 9) has collapsed, reaching new lows.
The market capitalization is approximately $391.98 million and the price-sales ratio is 0.12. The 14-day relative strength indicator of 44 indicates that the stock is still far from oversold levels.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 High-Yield Stocks for the Dividend Investor
- A Trio of Stocks That Have Grown Sales Fast
- Three Potentially Undervalued Stocks
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