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6 Poorly Performing Stocks in Gurus' Portfolios

- By Tiziano Frateschi

While gurus hold positions in these companies, the stock prices and returns continue to fall. The following are the worst-performing stocks over the last three months with a long-term presence in more than four gurus' portfolios.


CIT Group Inc. (CIT) had a negative performance of 15.6% over the last six months. The stock is held by 11 gurus.

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The bank has a $4.96 billion market cap. The stock is trading with a price-earnings ratio of 15.53. The stock price of $44.87 is 20.07% below its 52-week high and 2.35% above its 52-week low. Over the last 10 years, the price has climbed 17,848%.

Over the last five years, its revenue has increased 13.50%. The return on equity of 3.57% and return on assets of 0.54% are underperforming 76% of companies in the Global Banks - Regional - U.S. industry.

The company's largest shareholder among the gurus is First Pacific Advisors (Trades, Portfolio) with 8.28% of outstanding shares, followed by Steven Romick (Trades, Portfolio) with 6.87% and Hotchkis & Wiley with 2.71%.

General Dynamics Corp. (GD) had a negative performance of 21.1% over the last six months. The stock is held by 22 gurus.

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The aerospace and defense company has a market cap of $50.55 billion. The stock is trading with a price-earnings ratio of 17.22. The stock price of $171 is 25.83% below its 52-week high and 0.76% above its 52-week low. Over the last 10 years, the price has climbed 226%.

Over the last five years, its revenue has increased 2.70%. The return on equity of 25.86% and return on assets of 7.93% are outperforming 84% of companies in the Global Aerospace and Defense industry.

With 1.06% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by the Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.24%, Daniel Loeb (Trades, Portfolio) with 0.19% and First Eagle Investment (Trades, Portfolio) with 0.15%.

Stanley Black & Decker Inc. (SWK) had a negative performance of 19.2% over the last six months. The stock is held by 11 gurus.

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The company, which manufactures hand and power tools, has a market cap of $17.57 billion. As of Friday, the stock price of $114 is 34.97% below its 52-week high and 7.94% above its 52-week low. Over the past decade, it has returned a gain of 285%.

Over the last five years, the company's revenue has grown 6% and its earnings per share increased 24%. The return on equity of 12.55% and return on assets of 5.20% are outperforming 62% of companies in the Global Tools and Accessories industry.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 2.14% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.08%, Richard Pzena (Trades, Portfolio) with 0.25% and Simons' firm with 0.24%.

BlackRock Inc. (BLK), which is held by 12 gurus, had a negative performance of 25.1% over the last six months.

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The asset management company has a market cap of $60 billion. The stock is trading with a price-earnings ratio of 11.87. The stock price of $390 is 34.07% below its 52-week high and 4.16% above its 52-week low. Over the last 10 years, it has returned a gain of 266%.

Over the last five years, its revenue and earnings per share have grown by 6.80% and 13.10%. While the return on equity of 18.27% is outperforming the sector, the return on assets of 2.66% is underperforming 53% of companies in the Global Asset Management industry.

With 0.54% of outstanding shares, Steve Mandel (Trades, Portfolio) is the company's largest guru shareholder, followed by Loeb with 0.4%, Pioneer Investments with 0.21%, Tom Gayner (Trades, Portfolio) with 0.12% and Ken Fisher (Trades, Portfolio) with 0.08%.

The Estee Lauder Companies Inc. (EL) had a negative performance of 14.9% over the last six months. The stock is held by eight gurus.

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The cosmetics company has a $46.32 billion market cap. The stock is trading with a price-earnings ratio of 42.70. The stock price of $126.41 is 20.40% below its 52-week high and 15.18% above its 52-week low. Over the past decade, it has returned a gain of 676%.

Over the last five years, its revenue has grown 6.40% and its earnings per share have increased 2.90%. The return on equity of 24% and return on assets of 8.98% are outperforming 80% of companies in the Global Household and Personal Products industry.

The company's largest guru shareholder is Pioneer Investments with 1.9% of outstanding shares, followed by Simons with 0.8%, Fisher with 0.56% and Steven Cohen (Trades, Portfolio) with 0.1%.

Kansas City Southern (KSU), which is held by three gurus, had a negative performance of 5.3% over the last six months.

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The railroad company has a market cap of $10.55 billion. The stock is trading with a price-earnings ratio of 11.07. The stock price of $103.7 is 13.83% below its 52-week high and 4.25% above its 52-week low. Over the past decade, it has returned a gain of 304%.

Over the last five years, its revenue and earnings per share have grown 2.70% and 18.30%. The return on equity of 22.42% and the return on assets of 11.04% are outperforming 89% of companies in the Global Railroads industry.

With 0.54% of outstanding shares, Mandel is the company's largest guru shareholder, followed by Loeb with 0.4%, Pioneer Investments with 0.21%, Gayner with 0.12% and Fisher with 0.08%.

Disclosure: I do not own any stocks mentioned in this article.

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This article first appeared on GuruFocus.