As of Oct. 1, shareholders of the following companies have more than one reason to be unsatisfied with their investments.
First, shares of these stocks have underperformed the U.S. market over the past several years.
Second, both the forward dividend yield and the trailing 12-month dividend yield are ranked lower than most of their peers.
Third, these two stocks received underweight recommendation ratings from sell-side analysts on Wall Street, increasing the chances they will continue to underperform the market in the coming weeks.
As a result, shareholders may want to consider reducing their positions in these stocks.
Shares of Imperial Oil Ltd. IMO have fallen 6.5% over the past three months, increased only 1.3% so far this year, fallen 24.6% over the last 52 weeks and 18% over the last two years through Tuesday. They have underperformed the S&P 500 index by 5.4%, 16%, 23.5% and 33.43%.
The quarterly dividend the Canadian oil and gas producer paid on Oct. 1 to its shareholders was 22 cents (17 cents in U.S. dollars) per common share, generating a trailing 12-month dividend per common share of 82 cents.
Based on the closing share price on Tuesday, Imperial Oil’s forward dividend yield is 2.59% versus the industry median of 4.63% and the trailing 12-month dividend yield is 2.4% versus the industry median of 4.32%.
The forward dividend yield is ranked lower than 41 out of 53 operators in the oil and gas – integrated industry. The trailing 12-month dividend yield is ranked lower than 43 out of 54 competitors.
Shares of Imperial Oil have an underweight recommendation rating and an average target price of $29.31.
The oil and gas producer closed at $25.66 per share on Tuesday for a market capitalization of $19.54 billion.
The stock has a price-book ratio of 1.04 versus the industry median of 1.01 and an enterprise value-Ebitda ratio of 6.14 compared to the industry median of 5.27.
The 14-day relative strength index of 40 indicates the stock is neither oversold nor overbought.
GuruFocus assigned a 6.6 out of 10 rating for the company's financial strength and a rating of 7 out of 10 for its profitability and growth.
Shares of Hawaiian Holdings Inc. HA have declined 5% over the past three months, 0.6% year to date, nearly 31% over the past year and 35.3% over the past two years through Tuesday. They have underperformed the Nasdaq by 1%, 18.2%, 33% and 53.5%.
The quarterly dividend the Honolulu-based airline paid on Aug. 30 to its shareholders was 12 cents per common share, resulting in a trailing 12-month dividend per common share of 48 cents.
Based on the closing share price on Tuesday, Hawaiian Holdings’ forward dividend yield is 1.8% versus the industry median of 2.31% and the trailing 12-month dividend yield is 1.8% compared to the industry median of 2.4%.
The forward dividend yield is ranked lower than 32 out of 47 companies operating in the airline industry. Similarly, the trailing 12-month dividend yield is ranked lower than 33 out of 48 competitors.
Analysts issued an underweight recommendation rating for shares of Hawaiian Holdings with an average target price of $26.22.
Hawaiian Holdings’ stock closed at $26.61 on Tuesday for a market capitalization of $1.26 billion.
The stock has a price-book ratio of 1.27 versus the industry median of 1.5 and a price-sales ratio of 0.45 versus the industry median of 0.59.
The 14-day relative strength index of 51 indicates the stock is neither oversold nor overbought.
GuruFocus issued a 5.1 out of 10 rating for the company's financial strength and a 7 out of 10 rating for its profitability and growth.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Companies Growing Earnings Faster Than the S&P 500
- 3 Loyal Payers Announce Dividends
- Wall Street Predicts These Fairly Priced Stocks Will Outperform
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