1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1669) 

Consider Selling Shares of These 3 Underperforming Stocks

Companies have low or no dividend yield

August 23, 2019 | About:

The following companies have recorded losses on the stock market over the past several years and will likely continue to do so as sell-side analysts on Wall Street have issued underweight recommendation ratings.

These companies also either significantly underperform the S&P 500 Index's dividend yield or do not pay a dividend. The S&P 500 index granted 1.92% as of Thursday.

Thus, investors may want to reduce their holdings of the following securities.

Dillard's Inc. (NYSE:DDS) has declined 1.9% over the last week, 0.72% over the past three months, 6.81% so far this year, 25.10% over the last 52 weeks and 50.63% over the past five years through Aug. 22.

The department store operator closed at $56.2 per share on Thursday for a market capitalization of $1.45 billion. The stock has a price-earnings ratio of 11.49 versus the industry median of 16.38, a price-book ratio of 0.86 compared to an industry median of 1.29 and a price-sales ratio of 0.25 versus the industry median of 0.52.

Dillard's pays a quarterly dividend of 10 cents per share, generating a 0.71% forward dividend yield versus the S&P 500's yield based on Thursday's closing share price.

The 14-day relative strength index of 33 indicates the stock is near oversold levels.

Wall Street issued an average target price of $45.80, representing 18.5% downside to reach within the next 12 months.

In addition, GuruFocus assigned a financial strength rating of 6.2 out of 10 and a moderate profitability and growth rating of 5 out of 10.

Deutsche Bank AG (NYSE:DB) has fallen 0.12% over the past three months, 12.02% year to date, 37.05% over the last 52 weeks and 75.5% over the past five years through Aug. 22.

The German bank closed at $7.17 per share on Thursday for a market capitalization of $14.82 billion. The stock has a price-book ratio of 0.20 versus an industry median of 1 and a price-sales ratio of 0.56 versus the industry median of 2.79.

Deutsche Bank stopped paying dividends in 2017.

The 14-day relative strength index of 47 indicates the stock is neither overbought nor oversold.

Wall Street issued an average target price of $7.19, reflecting a 0.6% increase from Thursday’s closing price.

In addition, GuruFocus assigned a low financial strength rating of 3.4 out of 10 and an extremely low profitability and growth rating of 1 out of 10.

Rite Aid Corp. (NYSE:RAD) has retreated 2.23% over the last week, 23% over the past three months, 60.1% so far this year, 80.8% over the last 52 weeks and 95.63% over the past five years through Aug. 22.

The Camp Hill, Pennsylvania-based drugstore chain closed at $5.65 per share on Thursday for a market capitalization of $304 million.

The stock has a price-book ratio of 0.30 versus the industry median of 1.47 and a price-sales ratio of 0.02 versus the industry median of 0.42.

Rite Aid has not paid a dividend since Oct. 25, 1999.

The 14-day relative strength index of 35 indicates the stock is near oversold levels.

Wall Street issued an average target price of $6.75.

In addition, GuruFocus assigned a low financial strength rating of 3.7 out of 10 and a very low profitability and growth rating of 2 out of 10.

Disclosure: I have no positions in any securities mentioned.

Read more here:

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

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK