Shareholders of the following companies have more than enough reason to feel unsatisfied as their stocks have underperformed the S&P 500 largely in terms of share price growth over the last several years.
Furthermore, these companies are not distributing dividends.
Thus, investors may want to consider easing up on their holdings of LAIX Inc. (LAIX, Financial) and Mechel PAO (MTL, Financial), as Wall Street sell-side analysts also recommend a sell rating for these companies.
LAIX
Shares of the Chinese provider of online English language education and training services have dropped 28.4% so far this year, 65% over the past year and 72.3% in the past two years through May 15. The stock has underperformed the S&P 500 by 15.5%, 66% and 76% over these same periods.
The stock traded at $3.48 per share at close on May 15 for a market capitalization of $171.95 million and a 52-week range of $2.01 to $11.48.
The 14-day relative strength index of 52 suggests the stock is still far from oversold levels.
Mechel PAO
Shares of the Russian miner, steel producer and electricity distributor have dropped by 22.3% so far this year, 17.5% over the past year and 56.4% over the past two years through May 15. The stock has underperformed the S&P 500 by 10.6%, 22.1% and 61.5%.
The stock traded at $1.6 per share at close on May 15 for a market capitalization of $443.2 million and a 52-week range of $1.28 to $3.43.
Furthermore, the Peter Lynch chart suggests the stock is overvalued by the market, as the share price is currently trading far above the earnings line.
Disclosure: I have no positions in any securities mentioned in this article.
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