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2 Underperforming Holdings to Consider Reducing

As of Oct. 9, shareholders of Livent Corporation (NYSE:LTHM) and Astronics Corporation (NASDAQ:ATRO) have more than one reason to be unhappy with their holdings.

First, shares of these stocks have underperformed the U.S. market over the past several years. Second, these companies are not paying dividends. Third, sell-side analysts in 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 Corporation 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 Corporation have a moderate sell rating and an average target price of $7.33.

The stocks 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 Corporation 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, defence and electronic industries stopped paying dividends more than 25 years ago. On Feb. 24, 1994, shareholders received the last insignificant 0.3 cents semi-annual dividend per common share possessed.

Analysts issued a moderate sell recommendation rating for shares of Astronics Corporation with an average target price of $26.

Astronics Corporation's stock 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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This article first appeared on GuruFocus.