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2 Underperforming Holdings to Reduce

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GuruFocus.com
·2 min read
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- By Alberto Abaterusso

Unfortunately for the shareholders of Capital Senior Living Corp. (NYSE:CSU) and Forum Energy Technologies Inc. (NYSE:FET), these two stocks have experienced heavy losses over the past couple of years, underperforming the S&P 500 Index by a large margin.

Furthermore, these companies have negative recommendation ratings on Wall Street, which means their stocks are expected to continue to decline in the coming months.


Thus, shareholders should consider reducing their positions in these two companies in order to deploy the divested cash toward other assets.

Capital Senior Living

Based in Dallas, the company supplies independent and assisted living services as well as special and supplemental health care services to people living in approximately 126 senior housing communities in 23 states.

Shares of Capital Senior Living have declined 69% over the past year and 93% over the past three years through Dec. 17. The stock has underperformed the S&P 500 by 85.6% and 138.8%.

Currently, Capital Senior Living does not currently pay a dividend.

Shares were trading at around $14.88 each at close on Dec. 17 for a market capitalization of $31.02 million and a 52-week range of $6.75 to $51.15.

2 Underperforming Holdings to Reduce
2 Underperforming Holdings to Reduce

The 14-day relative strength index of 55 suggests the stock is still far from oversold levels.

On Wall Street, the stock has a sell recommendation rating and an average target price of $7.50 per share, reflecting a 49.6% downside from Thursday's closing price.

Forum Energy Technologies

Based in Houston, the company supplies equipment and related services to oil and gas operators.

Shares of Forum Energy Technologies have fallen 62% over the past year and 95% over the past three years through Dec. 17. The stock has underperformed the S&P 500 by 78.6% and 140.8%.

Currently, Forum Energy Technologies does not pay a dividend.

Shares were trading at around $13.16 each at close on Dec. 17 for a market capitalization of $73.88 million and a 52-week range of $3 to $40.2.

2 Underperforming Holdings to Reduce
2 Underperforming Holdings to Reduce

The 14-day relative strength index of 56 indicates the stock still stands far from oversold levels.

On Wall Street, the stock has an underweight rating with an average target price of $8 per share, reflecting 39.2% downside from Thursday's closing price.

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

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This article first appeared on GuruFocus.