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A Duo of Underperforming Holdings to Reduce

They have delivered poor share price performances

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Sep 18, 2020
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Shareholders of Fang Holdings Ltd (

SFUN, Financial) and Dillard's Inc (DDS, Financial) may want to reduce their holdings, in my opinion, as these stocks have performed poorly over the past one-year, three-year and five-year periods, underperforming the S&P 500 significantly.

Furthermore, these two stocks have negative recommendation ratings on Wall Street, which indicates that their share prices are predicted to underperform in the months ahead.

Fang Holdings Ltd

Shares of the Chinese operator of a real estate web portal in the People's Republic of China have declined 54% in the past year, 95% in the past three years and 96% in the past five years through Sept. 17. The stock has underperformed the S&P 500 index by about 67%, 130% and 169%, respectively.

Fang Holdings Ltd has not paid dividends to its shareholders since April 1, 2015.

Shares were trading at a price of $10.91 per unit at close on Sept. 17 for a market capitalization of $97.91 million and a 52-week range of $8.10 to $35.60.

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The 14-day relative strength index of 43 suggests that the stock is still far from oversold levels despite the tumble.

Wall Street sell-side analysts recommend an underweight rating for the stock and have established an average target price of 35 Chinese yuan ($5.20) per share.

Dillard's Inc

Shares of the Little Rock, Arkansas-based department store chain operator in the U.S. have declined by 43% over the past year, 38% over the past three years and 61% over the past five years through Sept. 17. The stock has underperformed the S&P 500 by 56%, 73% and 134%, respectively.

The company is currently paying a quarterly dividend of 15 cents per common share, but the dividend yield of 1.72% also underperforms the S&P 500 index' yield of 1.78%, as of Sept. 17.

Shares were trading at a price of $34.82 per unit at close on Sept. 17 for a market capitalization of $779.17 million and a 52-week range of $21.50 to $84.47.

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The 14-day relative strength index of 71 indicates that the stock is still extremely far from oversold levels despite the severe share price downturn.

Wall Street sell-side analysts recommend an underweight rating and have established an average target price of $26.80 per share.

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

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