5 Heavy Stocks in Gurus' Portfolios

CenturyLink makes the list

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Dec 27, 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.

CenturyLink Inc. (CTL) had a negative performance of 13.4% over the last six months. The stock is held by 11 gurus.

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The telecommunications company, has a $16.1 billion market cap. The stock is trading with a price-earnings ratio of 6.37. The stock price of $14.9 is 38.43% below its 52-week high and 0.71% above its 52-week low. Over the last 10 years, the price has fallen 44%.

Over the last five years, its revenue has decreased 0.10%. While the return on equity of 8.50% is outperforming the sector, the return on assets of 2.58% is underperforming 54% of companies in the Global Telecom Services industry.

The company's largest shareholder among the gurus is Mason Hawkins (Trades, Portfolio) with 12.47% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.85%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.43% and Prem Watsa (Trades, Portfolio) with 0.36%.

Mallinckrodt PLC (MNK) had a negative performance of 17.5% over the last six months. The stock is held by nine gurus.

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The drug manufacturing company has a market cap of $1.34 billion. The stock is trading with a price-earnings ratio of 0.90. The stock price of $16.03 is 56.26% below its 52-week high and 37.60% above its 52-week low. Over the last 10 years, the price has fallen 64%.

Over the last five years, its revenue has fallen 1%. The return on equity of 27.59% and return on assets of 11.41% are outperforming 83% of companies in the Global Drug Manufacturers - Specialty and Generic industry.

With 2.40% of outstanding shares, John Paulson (Trades, Portfolio) is the company's largest guru shareholder, followed Hotchkis & Wiley with 1.99%, Chuck Royce (Trades, Portfolio) with 1.28% and Jim Simons' (Trades, Portfolio) Renaissance Technologies LLC with 0.76%.

Adient PLC (ADNT) had a negative performance of 65.8% over the last six months. The stock is held by 12 gurus.

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The company, which supplies seating systems and components, has a market cap of $1.53 billion. The stock price of $16.38 is 80.64% below its 52-week high and 1.74% above its 52-week low. Over the past decade, it has returned a loss of 67%.

Over the last five years, the company’s revenue has fallen 7.70%. The return on equity of -44.50% and return on assets of -13.39% are underperforming 82% of companies in the Global Auto Parts industry.

The company's largest guru shareholder is Chris Davis (Trades, Portfolio) with 12.11% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 10.82%, Hotchkis & Wiley with 5.21% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.49%.

Waddell & Reed Financial Inc. Class A (WDR), which is held by 11 gurus, had a negative performance of 5.5% over the last six months.

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The asset management company has a market cap of $1.35 billion. The stock is trading with a price-earnings ratio of 8.40. The stock price of $17.22 is 27.71% below its 52-week high and 1.71% above its 52-week low. Over the last 10 years, it has returned a gain of 28%.

Over the last five years, its revenue has fallen 0.50%. The return on equity of 18.91% and return on assets of 12.56% are outperforming 85% of companies in the Global Asset Management industry.

With 2.28% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio) with 2.07% and Barrow, Hanley, Mewhinney & Strauss with 0.48%.

Tejon Ranch Co. (TRC) had a negative performance of 31% over the last six months. The stock is held by eight gurus.

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The fully diversified real estate company has a $450.8 million market cap. The stock is trading with a price-earnings ratio of 90.87. The stock price of $16.36 is 34.87% below its 52-week high and 4.24% above its 52-week low. Over the past decade, it has returned a loss of 29%.

Over the last five years, its revenue has fallen 4.30%. The return on equity of 1.17% and return on assets of 0.89% are underperforming 81% of companies in the Global Real Estate - General industry.

The company's largest guru shareholder is Royce with 6.3% of outstanding shares, followed the Third Avenue Management (Trades, Portfolio) with 4.92%, Gabelli with 2.46% and John Rogers (Trades, Portfolio) with 2.19%.

Disclosure: I do not own any stocks mentioned.