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. (DDS, Financial) 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 (DB, Financial) 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. (RAD, Financial) 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.
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