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Alberto Abaterusso
Alberto Abaterusso
Articles (1703) 

Sell These Stocks

These companies are expected to continue underperforming

September 11, 2019 | About:

As of Sept. 10, the following companies have disappointed shareholders, producing either negative or unmeaningful margins over the past 52 weeks.

These stocks will likely continue to do so as sell-side analysts issued underweight recommendation ratings, indicating they are expected to underperform either their respective industries or the entire market. 

These companies also disappoint shareholders in terms of a low forward dividend yield compared to the industry.

Thus, investors may want to consider reducing their holdings of the following stocks.

Shares of Wipro Ltd. (NYSE:WIT) have fallen 1.80% so far this year and 5.97% over the last 52 weeks through Tuesday.

The forward dividend yield of 0.28% is ranked lower than 695 out of a total of 853 companies operating in the information technology services industry.

The Indian IT services company closed at $3.78 per share on Tuesday for a market capitalization of $21.3 billion.

The stock has a price-earnings ratio of 16.34 versus the industry median of 24.93, a price-book ratio of 2.57 versus the industry median of 2.8 and a price-sales ratio of 2.57 versus the industry median of 2.23.

The 14-day relative strength index of 45 indicates the stock is neither oversold nor overbought.

GuruFocus, however, assigned a very high rating of 8 out of 10 for the company's financial strength and a 9 out of 10 rating for its profitability and growth.

FamilyMart Co. Ltd. (FYRTY) has declined 23.5% year to date, but shares were up 0.6% over the last 52 weeks through Tuesday.

The forward dividend yield is 1.54% as of Sept. 10. The yield is ranked lower than 411 out of a total of 535 companies operating in the retail – apparel specialty industry.

The Japanese department store chain closed at $23.72 per share on Tuesday for a market capitalization of $12.43 billion.

Further, the stock has a price-earnings ratio of 24.36 versus the industry median of 16.24, a price-book ratio of 2.22 versus an industry median of 1.23 and a price-sales ratio of 1.67 versus the industry median of 0.53.

The 14-day relative strength index of 48 indicates the stock is neither overbought nor oversold.

In addition, GuruFocus assigned a financial strength rating of 4.6 out of 10 and a profitability and growth rating of 7 out of 10.

Shares of Chr. Hansen Holding A/S (CHYHY) have declined 4.22% so far this year and 13.7% over the last 52 weeks through Tuesday.

As of Sept. 10, the forward dividend yield of 2.18% is ranked lower than 611 out of a total of 808 companies operating in the chemicals industry.

The Danish specialty chemicals manufacturer closed at $21.24 per share on Tuesday for a market capitalization of $11.19 billion.

Additionally, the stock has a price-earnings ratio of 41.32 versus the industry median of 15.17, a price-book ratio of 12.21 versus the industry median of 1.43 and a price-sales ratio of 8.8 versus the industry median of 1.01.

The 14-day relative strength index of 38 indicates the stock is neither overbought nor oversold.

GuruFocus assigned a financial strength rating of 5.8 out of 10 and a profitability and growth rating of 9 out of 10.

Disclosure: I have no positions in any securities mentioned.

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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.

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