Sell These Stocks

These companies are expected to continue underperforming

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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.Â

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. (WIT, Financial) 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, Financial) 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, Financial) 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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