Get Premium to unlock powerful stock data

2 Underperforming Holdings to Ease Up On

They have severely underperformed the S&P 500

Author's Avatar
Alberto Abaterusso
Nov 22, 2020
Article's Main Image

SOS Ltd. (

SOS, Financial) and Empresa Distribuidora y Comercializadora Norte SA (EDN, Financial) have reported significant losses with their holdings over the past couple of years, largely underperforming the S&P 500 Index.

Furthermore, these companies have negative recommendation ratings on Wall Street, indicating expectations of poor performance in the coming months.

Thus, shareholders may want to consider lowering their holdings in these two companies a little bit.

SOS

American depository receipts of the Chinese provider of consumer credit business and emergency rescue services have fallen 14% over the past year and 98% over the past three years through Nov. 20. The stock has underperformed the S&P 500 by 29.4% and 137%.

Currently, SOS does not pay dividends.

ADRs cloased at around $1.91 on Nov. 20 for a market capitalization of $49.80 million and a 52-week range of 51 cents to $6.

547476341.jpg

The 14-day relative strength index of 45 indicates the stock is still trading far from oversold levels despite the downturn.

The most recent sell-side analysts recommendation ratings on this stock are a hold rating (down from a previous buy rating) and an underweight rating (down from a previous equal weight rating).

Empresa Distribuidora y Comercializadora Norte

ADRs of the public distributor of electricity in Argentina have declined 35.4% over the past year, 93% over the past three years and 81% over the past five years through Nov. 20. The stock has underperformed the S&P 500 by 51%, 132% and 152.5%.

Currently, Empresa Distribuidora y Comercializadora Norte does not pay dividends.

ADRs traded at around $3.31 each on Nov. 20 for a market capitalization of $144.81 million and a 52-week range of $2.54 to $7.57.

300439900.jpg

The 14-day relative strength index of 45 indicates the stock is not oversold yet despite the decline in share price.

Wall Street sell-side analysts recommend an underweight rating for the stock.

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

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
Rating:
0 / 5 (0 votes)

Please Login to leave a comment