6 Declining Stocks in Gurus' Portfolios

Netflix tops the list

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Sep 26, 2019
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While gurus hold positions in these companies, their share prices and returns continue to decline. The following are the worst-performing stocks over the past six months with a long-term presence in more than five gurus' portfolios.

Shares of Salesforce.com Inc. (CRM) declined 5.85% over the past six months. The stock is held by 22 gurus.

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The company, which provides customer relationship management applications, has a $133.35 billion market cap. The stock was trading with a price-earnings ratio of 127.77. As of Thursday, the share price of $152.05 was 9.26% below the 52-week high and 33.85% above the 52-week low.

Over the past 10 years, the stock has climbed 958%. The return on equity of 6.13% and return on assets of 3.17% are outperforming 56% of companies in the Application Software industry.

The company's largest guru shareholder is the Sands Capital Management’s Frank Sands (Trades, Portfolio) with 0.84% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 0.93% and Ken Fisher (Trades, Portfolio) with 0.72%.

BP PLC (BP) is held by 17 gurus. The stock tumbled 10.44% over the past six months.

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The oil and gas company has a market cap of $129.81 billion. The stock was trading with a price-earnings ratio of 15.01. As of Thursday, the share price of $38.13 was 19.15% below the 52-week high and 6.73% above the 52-week low.

Over the past decade, the stock has fallen 28.79%. The return on equity of 8.99% and return on assets of 3.2% are underperforming 55% of companies in the Oil and Gas – Integrated industry.

With 0.73% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.36%, Fisher with 0.21% and Kahn Brothers (Trades, Portfolio) with 0.05%.

Shares of Netflix Inc. (NFLX) declined 29.48% over the past six months. The stock is held by 20 gurus.

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The company has a market cap of $111.47 billion. The stock was trading with a price-earnings ratio of 99.84. As of Thursday, the share price of $254.59 was 34.18% below the 52-week high and 10.10% above the 52-week low. Over the past decade, it has gained 3,775%.

The return on equity of 21.68% and return on assets of 4.45% are outperforming 69% of companies in the Entertainment industry.

The company's largest guru shareholder is Sands with 1.14% of outstanding shares, followed by Segalas with 0.72%, Chase Coleman (Trades, Portfolio) with 0.49% and Andreas Halvorsen (Trades, Portfolio)’s Viking Global Investors with 0.47%.

Shares of Philip Morris International Inc. (PM) declined 17.73% over the past six months. Twenty-three gurus hold the stock.

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The tobacco company has a market cap of $111.34 billion. The stock was trading with a price-earnings ratio of 14.23. As of Thursday, the share price of $71.56 was 22.84% below the 52-week high and 10.65% above the 52-week low.

The return on assets of 19.79% is outperforming 76% of companies Tobacco Products industry.

With 0.76% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the largest guru shareholder of the company, followed by Barrow, Hanley, Mewhinney & Strauss with 0.75%, Tom Russo (Trades, Portfolio) with 0.60% and Diamond Hill Capital (Trades, Portfolio) with 0.25%.

Eli Lilly and Co. (LLY) declined 10.72% over the past six months. The stock is held by 16 gurus.

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The pharmaceutical company has a $109.34 billion market cap. The stock was trading with a price-earnings ratio of 14.09. As of Thursday, the share price of $113.25 was 14.29% below the 52-week high and 8.72% above the 52-week low. Over the past decade, it has gained 242%.

The return on equity of 98.73% and return on assets of 18.89% are outperforming 94% of companies in the Drug Manufacturers industry.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 4.47% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.39% and Dodge & Cox with 0.92%.

Shares of AbbVie Inc. (ABBV) declined 5.86% over the past six months. The stock is held by 18 gurus.

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The drug company has a market cap of $107.86 billion. The stock was trading with a price-earnings ratio of 26.82 As of Thursday, the share price of $72.95 was 24.48% below the 52-week high and 16.42% above the 52-week low. Over the past 10 years, the stock has gained 108%.

The return on assets of 6.84% is outperforming 72% of companies in the Drug Manufacturers industry.

With 0.31% of outstanding shares, the Simons’ firm is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.25% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.06%.

Disclosure: I do not own any stocks mentioned.

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