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2 Underperforming Holdings to Ease Up On

GuruFocus.com
·2 min read

- By Alberto Abaterusso

Shareholders of Nabors Industries Ltd (NYSE:NBR) and Under Armour Inc (NYSE:UA) may want to ease their holdings, in my opinion, as these stocks underperformed the S&P 500 over the past one-year, three-year and five-year periods.

Furthermore, Wall Street sell-side analysts have issued negative recommendation ratings for these two holdings, which means that their share prices are predicted to continue to underperform in the months ahead.


Nabors Industries Ltd

Shares of the Bermuda-based oil and gas wells drilling operator have fallen by 68% in the past year, 94% in the past three years and 96% in the past five years through Oct. 5. The stock has underperformed the S&P 500 index by 83.5%, 127.7% and 165.2%, respectively.

Nabors Industries Ltd suspended the distribution of quarterly cash dividends after the payment of 50 cents per common share on April 2, as a result of several actions the company took to strengthen its balance sheet.

Shares traded at a price of $24.94 each at close on Oct. 5 for a market capitalization of $181.96 million and a 52-week range of $9.79 to $167.50.

2 Underperforming Holdings to Ease Up On
2 Underperforming Holdings to Ease Up On

The 14-day relative strength index of 37 indicates that the stock has not yet reached oversold levels despite the severe share price slump.

Wall Street sell-side analysts recommend an underweight rating for the stock and have determined an average target price of $30 per share.

Under Armour Inc

Shares of the Baltimore, Maryland-based distributor of branded performance apparel and footwear in North America and internationally have declined by 39% over the past year, 32% over the past three years and 74% over the past five years through Oct. 5. The stock has underperformed the S&P 500 by 54.5%, 65.7% and 143.2%, respectively.

Under Armour Inc does not pay dividends.

Shares traded at a price of $10.59 each at close on Oct. 5 for a market capitalization of $5.16 billion and a 52-week range of $6.37 to $19.65.

2 Underperforming Holdings to Ease Up On
2 Underperforming Holdings to Ease Up On

The 14-day relative strength index of 61 tells that the stock is still far from oversold levels despite the share price tumble.

On Wall Street, the stock has a recommendation rating of underperform and an average target price of $13.50 per share.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.