4 Underperforming Guru Stocks
Although gurus hold positions in the following companies, their share prices and returns have suffered declines recently. These are the worst-performing stocks over the past six months that have a long-term presence in multiple gurus' portfolios.
Flowserve
Shares of Flowserve Corp. (FLS) declined 5.05% over the past six months through Jan. 2. The stock is held by seven gurus.
The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 9.22% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 0.1.79% and Sarah Ketterer (Trades, Portfolio)'s Causeway Capital with 1.40%.
The company, which manufactures comprehensive flow control systems, has a market cap of $6.5 billion. The stock was trading with a price-earnings ratio of 26.47. As of Jan.02, the share price of $49.77 was 8.33% below the 52-week high and 37.34% above the 52-week low.
Over the past decade, share prices have risen 57%. The return on equity of 14.68% and return on assets of 5.22% are outperforming 64% of companies in the industrial products industry.
Alteryx
Shares of Alteryx Inc. (AYX) declined 9.16% over the past six months. Six gurus hold the stock.
With 0.93% of outstanding shares, Steven Cohen (Trades, Portfolio)'s Point72 Asset Management is the largest guru shareholder of the company, followed by Stanley Druckenmiller (Trades, Portfolio) with 0.70% and Paul Tudor Jones (Trades, Portfolio) with 0.29%.
The self-service data analytics software provider has a market cap of $6.51 billion. The stock was trading with a price-earnings ratio of 526.68 as of Jan. 2, and the share price of $100.07 was 32.29% below the 52-week high and 77.93% above the 52-week low.
The return on equity of 4.22% and return on assets of 1.76% are underperforming 52% of companies in the software industry. Over the past decade, share prices have gained 539%.
Berry Global Group
The Berry Global Group Inc. (BERY) declined 9.91% over the past six months. The stock is held by five gurus.
The company's largest guru shareholder is Ron Baron (Trades, Portfolio) with 0.61% of outstanding shares, followed by Cohen with 0.26%, Lee Ainslie (Trades, Portfolio)'s Causeway Capital with 0.09% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.
The company, which produces plastic packaging products, has a market cap of $6.27 billion. The stock was trading with a price-earnings ratio of 15.75, and as of Jan. 2, the share price of $47.49 was 19.91% below the 52-week high and 28.12% above the 52-week low.
Over the past decade, the stock has climbed 211%. The return on equity of 26.67% and return on assets of 3.86% are outperforming 54% of companies in the packaging and containers industry.
Wix.com
Shares of Wix.com Ltd. (WIX) declined 14.67% over the past six months. Six gurus hold the stock.
With 3.82% of outstanding shares, Baron is the largest guru shareholder of the company, followed by Philippe Laffont (Trades, Portfolio) with 0.17%, Ainslie with 0.10% and Jones with 0.03%.
The company, which provides web development platforms, has a $6.26 billion market cap. The stock was trading with a forward price-earnings ratio of 99.01. As of Jan. 2, the share price of $122.38 was 22.15% below the 52-week high and 42.92% above the 52-week low.
Over the past decade, the stock has climbed 643%. The return on equity of -43.23% and return on assets of -7.6% are underperforming 82% of companies in the software industry.
Disclosure: I do not own any stocks mentioned.
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This article first appeared on GuruFocus.
