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Underperforming Stocks in Gurus' Portfolios

- By Tiziano Frateschi

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


Endo International PLC (ENDP) had a negative performance of 42.7% over the last six months. Despite this, four mutual funds are holding the stock with a total weight of 2.40% on their portfolios.

The company has a market cap of $2.96 billion, and the stock is trading with a price-sales (P/S) ratio of 0.73. The price of $13.27 is 75.89% below its 52-week high and 16.18% above its 52-week low. Over the last 10 years, it has returned a loss of 59%. According to the DCF calculator the company is now undervalued with a margin of safety of 58%.

Over the last five years, the company has reported a 1.7% decrease in revenue.

The return on equity (ROE) of -2.09% and return on assets (ROA) of -0.67% are underperforming 71% of other companies in the Global Drug Manufacturers - Specialty & Generic industry.

The company's largest shareholder among the gurus is John Paulson (Trades, Portfolio) with 3.52% of outstanding shares followed by Larry Robbins (Trades, Portfolio) with 1.91%, Ray Dalio (Trades, Portfolio) with 0.69% and Jim Simons (Trades, Portfolio) with 0.68%.

Gulfport Energy Corp. (GPOR) had a negative performance of 27.9% over the last six months. Regardless five mutual funds are holding the stock with a total weight of 2.19% on their portfolios.

The company has a market cap of $2.99 billion, and the stock is trading with a P/S ratio of 5.82. The price of $18.96 is 45.69% below its 52-week high and 0.32% above its 52-week low. Over the last 10 years, it has returned a gain of 50%.

Over the last five years, Gulfport Energy has reported an increase of 0.90% in revenue.

The ROE of -48.73% and ROA of -28.19% are lower than 71% of other companies in the Global Oil & Gas E&P industry.

Andreas Halvorsen (Trades, Portfolio) is the company's largest shareholder among the gurus with 3.97% of outstanding shares followed by John Griffin (Trades, Portfolio) with 0.99%, Leon Cooperman (Trades, Portfolio) with 0.64%, Paul Tudor Jones (Trades, Portfolio) with 0.14% and Pioneer Investments (Trades, Portfolio) with 0.09%.

Manhattan Associates Inc. (MANH) had a negative performance of 16.3% over the last six months. Despite this, four mutual funds are holding the stock with a total weight of 0.33% on their portfolios.

The company has a market cap of $3.62 billion and is now trading with a P/E ratio of 29.70 and a P/B ratio of 21.33. The price of $51.39 is 25.33% below its 52-week high and 11.04% above its 52-week low. Over the last 10 years, it has returned a gain of 596%. According to the DCF calculator the company is now overpriced by 4%.

Over the last five years, the company has reported a revenue growth of 17.20%, 27.70% for earnings per share (EPS), 28.90% for EBITDA and 23.60% for free cash flow.

Current returns are positive: ROE of 68.88% and ROA of 40.27% are outperforming 98% of other companies in the Global Software - Application industry.

The company's largest shareholder among the gurus is Simons with 2.31% of outstanding shares followed by Columbia Wanger (Trades, Portfolio) with 1.2%, Joel Greenblatt (Trades, Portfolio) with 0.33% and Ron Baron (Trades, Portfolio) with 0.09%.

QEP Resources Inc. (QEP) had a negative performance of 15.3% over the last six months. Regardless four mutual funds are holding the stock with a total weight of 0.31% on their portfolios.

The company has a market cap of $4.13 billion, and the stock is trading with a price-book (P/B) ratio of 1.14. The price of $17.22 is 18.80% below its 52-week high and 87.02% above its 52-week low. Over the last 10 years, it has returned a loss of 51%.

Over the last five years the company reported a revenue decrease of 0.80%, 11.50% for EBITDA while free cash flow had a growth of 26.70%.

Its ROE of -30.77% and ROA of -14.78% are ranked lower than 90% of other companies in the Global Oil & Gas Integrated industry.

Steven Cohen (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.88% of outstanding shares followed by Simons with 0.62%, Mariko Gordon (Trades, Portfolio) with 0.06% and Caxton Associates (Trades, Portfolio) with 0.05%.

Williams-Sonoma Inc. (WSM) had a negative performance of 6.2% over the last six months. Despite this, four mutual funds are holding the stock with a total weight of 0.07% on their portfolios.

The company has a market cap of $4.25 billion. The stock is trading with a P/E ratio of 14.43 and forward P/E ratio of 13.26. The price of $48.35 is 22.33% below its 52-week high and 4.72% above its 52-week low. Over the last 10 years, it has returned a gain of 35%. According to the DCF calculator the company is now undervalued with a margin of safety of 14%.

Over the last five years the company reported a growth of 11.40% in revenue,11.50% for EBITDA, 13.10% for EPS and 11.70% for free cash flow.

Current returns are positive: ROE of 26.06% and ROA of 12.61% are outperforming 89% of other companies in the Global Specialty Retail industry.

The company's largest shareholder among the gurus is Tweedy Browne (Trades, Portfolio) with 0.28% of outstanding shares followed by Dalio with 0.05%, Greenblatt with 0.04% and Ken Fisher (Trades, Portfolio) with 0.04%.

Southwestern Energy Co. (SWN) had a negative performance of 37.4% over the last six months. Regardless five mutual funds are holding the stock with a total weight of 1.77% on their portfolios.

The company has a market cap of $4.31 billion, and the stock is trading with a forward P/E ratio of 10.68 and a P/B ratio of 3.84. The price of $8.70 is 44.19% below its 52-week high and 64.15% above its 52-week low. Over the last 10 years, it has returned a loss of 57%.

Over the last five years, the company has reported revenue growth of 4.70%.

Current returns are negative: ROE is -243.02% and ROA is -54.54%, underperforming 94% of the companies in the Global Oil & Gas E&P industry.

PRIMECAP Management (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.44% of outstanding shares followed by John Griffin (Trades, Portfolio) with 1.36%, Richard Snow (Trades, Portfolio) with 1.11% and Daniel Loeb (Trades, Portfolio) with 1.01%.

First American Financial Corp. (FAF) had a negative performance of 5.7% over the last six months. Despite this, four mutual funds are holding the stock with a total weight of 0.19% on their portfolios.

The company has a market cap of $4.31 billion, and the stock is trading with a P/E ratio of 12.74 and a forward P/E ratio of 12.74. The price of $39.23 is 10.14% below its 52-week high and 12.99% above its 52-week low. Over the last 10 years, it has returned a gain of 160%. According to the DCF calculator the company is now overpriced by 19%.

Over the last five years the company has reported a revenue gain of 5.90%, 15.30% for EBITDA, 28.80% free cash flow and 23.10% for EPS.

Current returns are positive: ROE is 11.77% and ROA is 3.95%, outperforming 62% of the companies in the Global Insurance - Specialty industry.

The company's largest shareholder among the gurus is John Rogers (Trades, Portfolio) with 5.01% of outstanding shares followed by Fisher with 1.32%, RS Investment Management (Trades, Portfolio) with 0.71% and Simons with 0.49%.

Anglogold Ashanti Ltd. ADR (AU) had a negative performance of 34.6% over the last six months. Regardless four mutual funds are holding the stock with a total weight of 2.45% on their portfolios.

The company has a market cap of $4.8 billion, and the stock is trading with a P/B ratio of 2.05. The price of $11.76 is 49.37% below its 52-week high and 25.00% above its 52-week low. Over the last 10 years, it has returned a loss of 75%.

Over the last five years, the company has reported a loss of 7.40% in revenue.

ROE (-5.98%) and ROA (-1.93%) are outperforming 61% of the companies in the Global Gold industry.

Paulson is the company's largest shareholder among the gurus with 3.13% of outstanding shares followed by Simons with 0.91%, Howard Marks (Trades, Portfolio) with 0.54% and Baron with 0.5%.

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

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This article first appeared on GuruFocus.