5 of the Worst Stocks in Gurus' Portfolios

BlackBerry and Ford make the list

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

Owens & Minor Inc. (OMI) had a negative performance of 52.7% over the last six months. The stock is held by seven gurus.

The company which distributes products to healthcare service providers, has a $442.73 million market cap. The stock is trading with a forward price-earnings ratio of 8.31. The stock price of $7.11 is 68.97% below its 52-week high and 0.42% above its 52-week low. Over the last 10 years, the price has fallen 72%.

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Over the last five years, its revenue has increased 2.30%. The return on equity of -16.50% and return on assets of -4.19% are underperforming 64% of companies in the Global Medical Distribution industry.

The company's largest shareholder among the gurus is Charles Brandes (Trades, Portfolio) with 2.4% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1.31%, Barrow, Hanley, Mewhinney & Strauss with 0.29% and Mario Gabelli (Trades, Portfolio) with 0.27%.

BlackBerry Ltd. (BB) had a negative performance of 29.4% over the last six months. The stock is held by 12 gurus.

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The manufacturer of wireless solutions for mobile communications market, has a market cap of $4.75 billion. The stock is trading with a forward price-earnings ratio of 46.95. The stock price of $8.41 is 42.20% below its 52-week high and 2.19% above its 52-week low. Over the last 10 years, the price has fallen 79%.

Over the last five years, its revenue has fallen 37.50%. The return on equity of -11.99% and return on assets of -7.87% are outperforming 80% of companies in the Global Communication Equipment industry.

With 13.71% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed Prem Watsa (Trades, Portfolio) with 8.69%, Kahn Brothers (Trades, Portfolio) with 0.85% and First Eagle Investment (Trades, Portfolio) with 0.78%.

Callon Petroleum Co. (CPE) had a negative performance of 17.4% over the last six months. The stock is held by six gurus.

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The company, which operates in the operation and production of oil and natural gas properties, has a market cap of $1.93 billion. As of Friday, the stock price of $8.35 is 41.98% below its 52-week high and 0.24% above its 52-week low. Over the past decade, it has returned a gain of 463%.

Over the last five years, the company’s revenue has fallen 10.70%. The return on equity of 7.88% and return on assets of 5.44% are outperforming 70% of companies in the Global Oil and Gas E&P industry.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 2.2% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 1.27%, Steven Cohen (Trades, Portfolio) with 0.22% and HOTCHKIS & WILEY with 0.21%.

Ford Motor Co. (F), which is held by eight gurus, had a negative performance of 19.3% over the last six months.

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The asset management company has a market cap of $38.19 billion. The stock is trading with a price-earnings ratio of 5.92. The stock price of $9.18 is 31.90% below its 52-week high and 12.36% above its 52-week low. Over the last 10 years, it has returned a gain of 172%.

Over the last five years, its revenue and earnings per share have grown by 2.90% and 1.30%. While the return on equity of 17.46% is outperforming the sector, the return on assets of 2.40% is underperforming 62% of companies in the Global Auto Manufacturers industry.

With 1.03% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.38%.

Goldcorp Inc. (GG) had a negative performance of 31% over the last six months. The stock is held by seven gurus.

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The company which operates in the exploration and acquisition of precious metal properties has a $8.19 billion market cap. The stock is trading with a price-earnings ratio of 114.64. The stock price of $9.52 is 38.78% below its 52-week high and 13.06% above its 52-week low. Over the past decade, it has returned a loss of 60%.

Over the last five years, its revenue has grown 1.20%. The return on equity of 0.51% and return on assets of 0.33% are outperforming 70% of companies in the Global Gold industry.

The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 3.43% of outstanding shares, followed the Pioneer Investments (Trades, Portfolio) with 0.39%, John Paulson (Trades, Portfolio) with 0.09%, John Hussman (Trades, Portfolio) with 0.07% and Ray Dalio (Trades, Portfolio) with 0.07%.

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