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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 past six months with a long-term presence in more than five gurus' portfolios.


Shares of AT&T Inc. (NYSE:T) declined 5.03% over the last six months. The stock is held by 19 gurus.

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The telecom company has a $224 billion market cap. The stock is trading with a price-earnings ratio of 10.73. The share price of $30.77 is 15.42% below its 52-week high and 14.85% above its 52-week low.

Over the last 10 years, the stock has gained 25%. Over the last five years, the company's revenue has risen 2.80%. The return on equity of 11.56% and return on assets of 3.89% are outperforming 74% of companies in the Global Telecom Services industry.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.37% of outstanding shares, followed by Dodge & Cox with 0.28% and Barrow, Hanley, Mewhinney & Strauss with 0.13%.

Pentair PLC (PNR) is held by seven gurus. The stock tumbled 5.05% over the last six months.

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The water treatment company has a market cap of $7.29 billion. The stock is trading with a price-earnings ratio of 21.74. The share price of $42.55 is 41.61% below its 52-week high and 20.68% above its 52-week low. Over the past decade, the stock has climbed 182%.

Over the last five years, the company's revenue has fallen 14.30%. The return on equity of 11.31% and return on assets of 5.90% are outperforming 65% of companies in the Global Diversified Industrials industry.

With 1.15% of outstanding shares, Mairs and Power (Trades, Portfolio) is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.86%, the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.67% and Pioneer Investments with 0.35%.

Class A shares of Watts Water Technologies Inc. (WTS) declined 5.06% over the last six months. The stock is held by six gurus.

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The company, which supplies safety and water conservation products, has a market cap of $2.61 billion. The stock is trading with a price-earnings ratio of 20.76. The share price of $77 is 17.16% below its 52-week high and 26.42% above its 52-week low. Over the past decade, it has returned 275%.

Over the last five years, the company's revenue has grown 2.40%. The return on equity of 14.82% and return on assets of 7.64% are outperforming 75% of companies in the Global Diversified Industrials industry.

The company's largest guru shareholder is Mario Gabelli (Trades, Portfolio) with 3.48% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.70% and Chuck Royce (Trades, Portfolio) with 0.18%.

Class A shares of Cactus Inc. (WHD) declined 5.07% over the last six months. The stock is held by seven gurus.

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The company, which manufactures wellheads and pressure control equipment, has a market cap of $2.67 billion. The stock is trading with a price-earnings ratio of 23.03. The share price of $35.6 is 12.11% below its 52-week high and 46.38% above its 52-week low. Over the last 10 years, it has returned a gain of 76%.

Over the last five years, its revenue has not changed. The return on equity of 52.59% and return on assets of 11.85% are underperforming 99% of companies in the Global Oil and Gas Equipment and Services industry.

With 0.80% of outstanding shares, Pioneer Investments is the company's largest guru shareholder, followed by Simons' firm with 0.22% and Ken Fisher (Trades, Portfolio) with 0.18%.

Cypress Semiconductor Corp. (CY) declined 5.07% over the last six months. The stock is held by eight gurus.

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The semiconductor company has a $5.4 billion market cap. The stock is trading with a price-earnings ratio of 15.60. The share price of $14.81 is 20.25% below its 52-week high and 26.17% above its 52-week low. Over the past decade, it has returned 113%.

Over the last five years, its revenue has grown 9.50%. The return on equity of 18.66% and return on assets of 9.94% are underperforming 69% of companies in the Global Semiconductors industry.

The company's largest guru shareholder is the NWQ Managers (Trades, Portfolio) with 0.62% of outstanding shares, followed by Gabelli with 0.45% and Royce with 0.28%.

Ormat Technologies Inc. (ORA), which is held by three gurus, declined 5.12% over the last six months.

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The company, which operates recovered energy-based power plants, has a market cap of $2.77 billion. The stock is trading with a price-earnings ratio of 28.55. The share price of $54.54 is 9.33% below its 52-week high and 19.33% above its 52-week low. Over the past decade, the stock has returned 94%.

Over the last five years, its revenue has grown 3.90%. The return on equity of 7.61% and return on assets of 3.38% are outperforming 71% of companies in the Global Utilities - Independent Power Producers industry.

With 1.96% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Gabelli with 0.16% and Pioneer Investments with 0.04%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.