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2 Underperforming Stocks to Reduce

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- By Alberto Abaterusso

Shareholders of Abraxas Petroleum Corp (NASDAQ:AXAS) and Four Seasons Education (Cayman) Inc (NYSE:FEDU) have witnessed their ownerships going down in value dramatically over the past couple of years, underperforming the S&P 500 Index significantly.

Furthermore, sell-side analysts on Wall Street do not seem to be optimistic about these stocks, as they have issued lackluster ratings for them.


Therefore, shareholders of these stocks may want to consider to lower their ownerships, in my opinion.

Abraxas Petroleum Corp

Abraxas is a San Antonio, Texas-based independent acquirer, explorer, user, developer and producer of oil and gas from estimated net proved mineral reserves hovering 56.4 million barrels of oil equivalent located in the Rocky Mountain and South Texas regions.

Shares have declined by 60% over the past year, 96% over the past three years and 92% over the past five years through May 3, underperforming the S&P 500 by 108%, 153% and 196%, respectively.

Currently, Abraxas Petroleum Corp does not pay any dividend.

The share price traded at around $1.99 at close on May 3 for a market capitalization of $16.72 million and a 52-week range of $1.41 to $9.

2 Underperforming Stocks to Reduce
2 Underperforming Stocks to Reduce

The 14-day relative strength index of 30 indicates the stock is trading not so far from oversold levels as a consequence of the sharp decline in the share price.

One sell-side analyst on Wall Street has recommended a sell rating for this stock.

Four Seasons Education (Cayman) Inc

Four Seasons is a Shanghai, China-based operator of 53 after-school education centers in 11 Chinese cities where kindergarten, elementary and middle school students can learn mathematics.

Shares have decreased by 19% over the past year, 84% over the past three years and by 88% over the past five years through May 3, underperforming the S&P 500 by 67%, 141% and 192%, respectively.

Currently, Four Seasons does not pay any dividend.

The share price traded at around $1.10 at close on May 3 for a market capitalization of $51.01 million and a 52-week range of $0.62 to $2.64.

2 Underperforming Stocks to Reduce
2 Underperforming Stocks to Reduce

The 14-day relative strength index of 45 indicates the stock is still far from oversold levels despite the share price tumble.

One sell-side analyst on Wall Street has recommended a sell rating for this stock.

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

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This article first appeared on GuruFocus.