2 Underperforming Stocks to Reduce

Wall Street analysts forecast disappointing performances

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Tarena International Inc (TEDU, Financial) and Cheetah Mobile Inc (CMCM, Financial) have underperformed the S&P 500 index significantly in terms of stock price growth over the past one-year, three-year and five-year periods.

Wall Street sell-side analysts have also issued negative recommendation ratings for both of them, indicating that these companies are expected to continue to disappoint in the months ahead.

Tarena International Inc

Shares of the Chinese educational and training services provider have dropped 23% in the past year, 86% in the past three years and 83.2% in the past five years through June 10. The stock has underperformed the S&P 500 by 33.5%, 117.2% and 253.7%, respectively.

The company stopped paying dividends in 2018.

The stock price traded at $2.40 per share at close on June 10 for a market cap of $130.58 million and a 52-week range of $0.69 to $5.45.

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The 14-day relative strength index of 38 suggests the stock is not close to oversold levels yet.

Cheetah Mobile Inc

Shares of the Chinese global mobile internet company have declined 21.2% over the past year, 71.4% over the past three years and 90.6% over the past five years through June 10. The stock has underperformed the S&P 500 by 31.7%, 102.6% and 143%, respectively.

Cheetah Mobile Inc does not pay regular dividends to its shareholders.

Shares were trading at around $3.19 per unit at close on June 10 for a market cap of $444.4 million and a 52-week range of $1.85 to $6.38.

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The 14-day relative strength index of 65 suggests that the stock is still far from oversold levels.

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

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