2 Underperforming Holdings to Ease Up On

Shutterstock Inc (NYSE:SSTK) and FTS International Inc (FTSI) have underperformed the S&P 500 index substantially in terms of share price growth over the past one-year, three-year and five-year periods.

Wall Street sell-side analysts also recommended an underweight rating for these companies, indicating that the share prices are predicted to keep on performing poorly in the months ahead.

Shutterstock Inc

Shares of the U.S. global provider of stock photography, multimedia and editing tools have fallen by 4% in the past year, 20.8% in the past three years and 42% in the past five years through May 28. The stock has underperformed the S&P 500 by 12%, 46.2% and 85.8%, respectively.

The dividend yield of 0.47% also underperforms the S&P 500 yield of 1.97%.

Furthermore, the Peter Lynch chart suggests that this stock is overvalued by the market, as the share price ($36.78 as of May 28) trades above the earnings line.

• Warning! GuruFocus has detected 7 Warning Signs with SSTK. Click here to check it out.
• SSTK 30-Year Financial Data
• The intrinsic value of SSTK
• Peter Lynch Chart of SSTK

The 14-day relative strength index of 52 suggests the stock is neither overbought nor oversold.

FTS International Inc

Shares of the Fort Worth, Texas-based provider of hydraulic fracturing services in the U.S. and Canada have fallen 95.4% over the past year, 98% over the past three years and five years through May 28. The stock has underperformed the S&P 500 by 103.5%, 123.4% and 141.8%, respectively.

FTS International Inc does not pay dividends.

The stock price closed at $7.19 on May 28 for a market cap of $38.67 million, a price-book ratio of 26.63 (versus the industry median of 0.7) and a 52-week range of $3.40 to $138.20.

The 14-day relative strength index of 58 suggests the stock is neither overbought nor oversold.

Disclosure: I have no positions in any securities mentioned in this article.

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