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Alberto Abaterusso
Alberto Abaterusso
Articles (2466) 

Two Underperforming Holdings to Ease Up On

Wall Street analysts recommend a moderate sell rating for them

May 04, 2020 | About:

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) and JTEKT Corp (JTEKF), 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.


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.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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