First, these stocks have underperformed the U.S. market over the past several years. Second, these companies are not paying dividends. Third, sell-side analysts on Wall Street issued moderate sell recommendation ratings, indicating they will likely continue to underperform over the next 12 months.
As a result, shareholders may want to consider reducing their positions in these stocks.
Shares of Livent have decreased 5% over the past three months, 53.3% so far this year, 62% over the last 52 weeks and 60.3% over the last five years through Wednesday. They have underperformed the S&P 500 Index by 2.5%, 69.7%, 69% and 65.8%.
The Philadelphia-based global producer of performance lithium compounds for energy storage does not pay a dividend.
Shares of Livent have a moderate sell rating and an average target price of $7.33.
The stock closed at $6.45 per share on Wednesday for a market capitalization of $941.57 million.
The stock has a price-book ratio of 1.78 versus the industry median of 1.43 and a price-sales ratio of 2.12 compared to the industry median of 1.38.
The 14-day relative strength index of 44 indicates the stock is neither oversold nor overbought.
GuruFocus assigned a 6.4 out of 10 rating for the company's financial strength and a 5 out of 10 rating for its profitability.
Shares of Astronics have fallen 25% over the past three months, 5.4% year to date, 10.5% over the past year and increased only 2.4% over the past five years through Wednesday. They have underperformed the Nasdaq by 22.4%, 24.6%, 16.4%, and 87%.
The East Aurora, New York-based designer and manufacturer of products for the aerospace, defense and electronic industries stopped paying dividends more than 25 years ago. On Feb. 24, 1994, shareholders received the last semi-annual dividend of 3 cents per common share.
Analysts issued a moderate sell recommendation rating for shares of Astronics with an average target price of $26.
Astronics closed at $28.8 per share on Wednesday for a market capitalization of $938.92 million.
The stock has a price-book ratio of 2.02 versus the industry median of 2.09 and a price-sales ratio of 1.16 versus the industry median of 1.32.
The 14-day relative strength index of 45 indicates the stock is neither oversold nor overbought.
GuruFocus issued a 6 out of 10 rating for the company's financial strength and an 8 out of 10 rating for its profitability.
Disclosure: I have no positions in any securities mentioned.
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