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Reduce Your Exposure to These 2 Disappointing Stocks

Shareholders of Sprint Corp. (NYSE:S) and MSG Networks Inc. (NYSE:MSGN) have ample reason to feel dissatisfied with their holdings.

First of all, these two stocks have underperformed the S&P 500 Index in recent years. While the index grew 27.3% over the past year, 44.8% over the past three years and 60.3% over the past five years through Jan. 13, these two stocks underperformed significantly.


Second, these stocks don't pay dividends.

Third, Wall Street sell-side analysts recommend easing exposure to these stocks.

Sprint

Shares of Sprint have dropped 20% in the past year, 45.2% in the past three years and rose by only 19.5% in the past five years through Jan. 13, underperforming the S&P 500 by 47%, 90% and 40.8%.

The Overland Park, Kansas-based telecommunication services provider stopped paying dividends more than 12 years ago.

Wall Street sell-side analysts issued a moderate sell recommendation rating for the stock and established an average target price of $5.05 versus Monday's closing share price of $4.89. The stock has a market cap of around $19.92 billion.

According to the Peter Lynch chart, Sprint is overvalued.

The 14-day relative strength index of 27 suggests the stock is oversold.

GuruFocus assigned a low rating of 4 out of 10 for both the company's financial strength and its profitability.

MSG Networks

Shares of MSG Networks have fallen by 35.8% in the past year, 28.7% over the past three years and by 31.02% over the past five years, underperforming the S&P 500 Index by 54.3%, 73.5%, and 91.3%.

The New York-based regional cable and satellite television network does not pay a dividend.

Wall Street sell-side analysts issued a moderate sell recommendation rating for MSG Networks with an average target price of $15.33 versus Monday's closing share price of $15.66. The stock has a market cap of $941.93 million.

According to the Peter Lynch chart, the stock looks cheap due to the sharp deterioration in its market value in recent years.

In fact, the 14-day relative strength index of 31 indicates the stock is almost oversold.

GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a high rating of 8 out of 10 for its profitability.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.