U.S. Markets closed

6 Underperforming 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.


Dillard's Inc. (DDS) had a negative performance of 5.1% over the last six months. The stock has a total weight of 1.77% in nine gurus' portfolios.

403266121.png

The department store has a $2.13 billion market cap. The stock is trading with a price-earnings ratio of 9.11. The current stock price of $78.73 is 21.58% below its 52-week high and 55.16% above its 52-week low. Over the past decade, it has returned a gain of 462%.

Over the last five years, its revenue has climbed 9.20% but its earnings per share fell 2.20%. The return on equity of 15.12% and return on assets of 6.60% are outperforming 74% of companies in the Global Department Stores industry.

The company's largest shareholder among the gurus is Lee Ainslie (Trades, Portfolio) with 1.08% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.23% and John Hussman (Trades, Portfolio) with 0.18%.

Children's Place Inc. (PLCE) had a negative performance of 5.3% over the last six months. The stock has a total weight of 1.18% in seven gurus' portfolios.

329136167.png

The retailer of children's apparel has a market cap of $2.12 billion. The stock is trading with a price-earnings ratio of 29.95. The current stock price of $124 is 20.17% below its 52-week high and 29.18% above its 52-week low. Over the last 10 years, it has returned a gain of 239%.

Over the last five years, its revenue has increased 6.60% and its earnings per share have grown 17.10%. The return on equity of 17.04% and return on assets of 7.97% are outperforming 79% of companies in the Global Apparel Stores industry.

With 5.34% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Ainslie with 1.58% and Simons with 0.97%.

Eastman Chemical Co. (EMN) had a negative performance of 8.3% over the last six months. The stock has a total weight of 3.14% in 11 gurus' portfolios.

176771498.png

The photography company has a market cap of $13.77 billion. The stock is trading with a price-earnings ratio of 9.77. The current stock price of $97.48 is 13.31% below its 52-week high and 15.47% above its 52-week low. Over the past decade, it has returned a gain of 224%.

Over the last five years, the company's revenue has grown 2.90% and its earning per share have increased 16.20%. The return on equity of 27.34% and return on assets of 8.98% are outperforming 73% of companies in the Global Chemicals industry.

The largest shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with 0.81% of outstanding shares, followed by Leon Cooperman (Trades, Portfolio) with 0.24% and Pioneer Investments (Trades, Portfolio) with 0.21%.

ManpowerGroup Inc. (MAN) had a negative performance of 26% over the last six months. The stock has a total weight of 3.01% in 16 gurus' portfolios.

1282385168.png

The employment services company has a market cap of $5.72 billion. The stock is trading with a price-earnings ratio of 10. The current stock price of $88.50 is 35.58% below its 52-week high and 7.77% above its 52-week low. Over the last 10 years, it has returned a gain of 97%.

Over the last five years, its revenue has climbed 3.30% and its earnings per share have grown 24.10%. While the return on equity of 21.95% is outperforming the industry, the return on assets of 6.86% is underperforming 52% of companies in the Global Staffing and Outsourcing Services industry.

With 0.9% of outstanding shares, Royce is the company's largest shareholder among the gurus, followed by Steven Cohen (Trades, Portfolio) with 0.69%, Columbia Wanger (Trades, Portfolio) with 0.49% and Joel Greenblatt (Trades, Portfolio) with 0.37%.

Ingredion Inc. (INGR) had a negative performance of 20.5% over the last six months. The stock has a total weight of 2.81% in 12 gurus' portfolios.

2118667376.png

The company, which supplies high-quality food and industrial ingredients worldwide, has a $7.39 billion market cap. The stock is trading with a price-earnings ratio of 14.71. The current stock price of $104 is 28.90% below its 52-week high and 9.46% above its 52-week low. Over the past decade, it has returned a gain of 211%.

Over the last five years, its earnings per share have grown 6.5%. The return on equity of 18.18% and return on assets of 8.80% are outperforming 78% of companies in the Global Packaged Foods industry.

The largest guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 0.98% of outstanding shares, followed by Richard Snow (Trades, Portfolio) with 0.63%, Pioneer Investments with 0.58% and Simons with 0.43%.

The Travelers Companies Inc. (TRV) had a negative performance of 5.7% over the last six months. The stock has a total weight of 5.73% in 17 gurus' portfolios.

1608775004.png

The property and casualty insurance company has a $34.8 billion market cap. The stock is trading with a price-earnings ratio of 17.62. The current stock price of $130.01 is 13.64% below its 52-week high and 8.81% above its 52-week low. Over the last 10 years, it has returned a gain of 156%.

Over the last five years, its revenue has climbed 9.70% and its earnings per share have grown 2.70%. While the return on equity of 8.65% is outperforming the industry, the return on assets of 1.97% is underperforming 51% of companies in the Global Insurance - Property and Casualty industry.

With 0.83% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 0.18%, PRIMECAP Management (Trades, Portfolio) with 0.15% and Simons with 0.14%.

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

This article first appeared on GuruFocus.