6 Stocks Underperforming Gurus' Portfolios

Kellogg, Masonite among companies with falling stock prices and returns

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Jun 07, 2018
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While gurus hold positions in these companies, the stock price and returns continue to fall. These are the worst-performing stocks over the last three months with a long-term presence in more than four gurus’ portfolios.

Kellogg Co. (K) had a negative performance of 6.1% over the past six months. The stock has a total weight of 0.34% in three gurus’ portfolios.

The company operates in the manufacturing and marketing of cereal and convenience foods. It has a market cap of $21.82 billion. The stock is trading with a price-earnings (P/E) ratio of 15.16. The current stock price of $62.91 is 15.31% below its 52-week high and 11.54% above its 52-week low. Over the past decade, it has returned a gain of 25%.

Over the past five years, Kellogg reported an increase of 2.30% for revenue. The return of equity (ROE) of 68.98% and return on assets (ROA) of 9.11% are outperforming 74% of other companies in the Global Packaged Foods industry.

The largest shareholder among the gurus is T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.37% followed by Richard Pzena (Trades, Portfolio) with 0.28% and Pioneer Investments (Trades, Portfolio) with 0.27%.

Masonite International Corp. (DOOR) had a negative performance of 5.5% over the past six months. The stock has a total weight of 0.32% in three gurus’ portfolios.

The company manufactures and distributes interior and exterior doors for residential and commercial properties. It has a market cap of $1.85 billion. The stock is trading with a price-earnings ratio of 13.26. The price of $67.1 is 16.02% below its 52-week high and 33.13% above its 52-week low. Over the past 10 years, it has returned a gain of 236%.

The ROE of 21.73% and ROA of 9.28% are outperforming 83% of companies in the Global Building Materials industry.

Hotchkis & Wiley with 4.63% of outstanding shares is the largest investor among the gurus followed by Pzena with 3.36%, Ron Baron (Trades, Portfolio) with 2.54% and Simons with 1.04%.

PulteGroup Inc. (PHM) had a negative performance of 5.1% over the past six months. The stock has a total weight of 0.10% in three gurus’ portfolios.

The company offers products and solutions to assist consumers in their marketing activity. It has a market cap of $8.89 billion. The stock is trading with a P/E ratio of 17.80. The current stock price of $31.15 is 11.53% below its 52-week high and 34.27% above its 52-week low. Over the past decade, it has returned a gain of 193%.

The ROE of 11.90% and ROA of 5.36% are outperforming 65% of other companies in the Global Residential Construction industry.

The largest shareholder among the gurus is Richard Snow (Trades, Portfolio) with 0.62% followed by Simons with 0.4% and Pioneer Investments (Trades, Portfolio) with 0.37%.

GCI Liberty Inc. Class A (GLIBA) had a negative performance of 23.2% over the past six months. The stock has a total weight of 1.02% in three gurus’ portfolios.

The company is a provider of various wireless and other related services to its customers in Alaska. It has a market cap of $4.66 billion. The stock is trading with a P/E ratio of 5.52. Over the past 10 years, it has returned a gain of 327%.

The ROE of 20.73% and ROA of 8.58% are outperforming 91% of the companies in the Global Telecom Services industry.

George Soros (Trades, Portfolio) with 0.76% of outstanding shares is the largest investor among the gurus followed by Ron Baron (Trades, Portfolio) with 0.61% and Wallace Weitz (Trades, Portfolio) with 0.49%.

Pampa Energia SA ADR (PAM) had a negative performance of 22.9% over the past six months. The stock has a total weight of 0.60% in three gurus’ portfolios.

The company generates and distributes electricity in Argentina. It has a market cap of $3.67 billion. The stock is trading with a price-earnings ratio of 17.49. The current stock price of $48.91 is 32.98% below its 52-week high and 5.75% above its 52-week low. Over the past decade, it has returned a gain of 284%.

Over the past five years, Pampa Energia reported a gain of 24.80% for revenue. The ROE of 37.19% and ROA of 5.84% are outperforming 69% of other companies in the Global Utilities - Regulated Electric industry.

The largest shareholder among the gurus is Daniel Loeb (Trades, Portfolio) with 1.5% followed by Pioneer Investments (Trades, Portfolio) with 0.31% and Manning & Napier Advisors, Inc with 0.16%.

Beacon Roofing Supply Inc. (BECN) had a negative performance of 31.3% over the last six months. The stock has a total weight of 3.01% in three gurus’ portfolios.

The company operates in the distribution of residential roofing materials in the United States and Canada. It has a market cap of $2.9 billion. The stock is trading with a price-earnings ratio of 31.07. The current stock price of $42.57 is 35.96% below its 52-week high and 9.97% above its 52-week low. Over the past 10 years, it has returned a gain of 257%.

Over the past five years, its revenue has increased 6.60% and earnings per shares (EPS) increased 8.00%. The ROE of 4.95% and ROA of 2.19% are outperforming 55% of the companies in the Global Building Materials industry.

Ken Fisher (Trades, Portfolio) with 2.62% of outstanding shares is the largest investor among the gurus followed by Baron with 1.45%, Mariko Gordon (Trades, Portfolio) with 1.3% and Simons with 0.45%.

Disclosure: I do not own any shares of any stocks mentioned in this article.