6 Underperforming Stocks That Consistently Beat Analyst Earnings Estimates

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 |  Includes: AMSC, AOL, DWA, F, JNY, PRX
by: Kapitall

Here we present a list of six companies that have, on average, beaten analysts’ earnings estimates over the past four quarters. These companies have also been underperforming recently, losing more than 10% over the last quarter.

If you're a contrarian, this excessive pessimism might raise a flag. (To access a complete analysis of each stock's earnings history, click here.)

Earnings data sourced from AOL Money, all other data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

List sorted by average earnings surprise over the last year.

1. AOL, Inc. (NYSE:AOL): Internet Information Providers Industry. Market cap of $2.07B. The stock has lost 24.63% over the last quarter, but has outperformed analyst earnings estimates by an average of 41.67% over the last year.

The stock is a short squeeze candidate, with a short float at 8.16% (equivalent to 6.92 days of average volume). The stock is currently stuck in a downtrend, trading 7.29% below its SMA20, 14.4% below its SMA50, and 16.14% below its SMA200.

2. Ford Motor Co. (NYSE:F): Auto Manufacturer. Market cap of $54.05B. The stock has lost 13.71% over the last quarter, but has outperformed analyst earnings estimates by an average of 34.09% over the last year.

Note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.36). It may be undervalued at current levels, with a PEG ratio at 0.7, and P/FCF ratio at 7.32. The stock has also performed poorly over the last month, losing 11.3%.

3. DreamWorks Animation SKG Inc. (NASDAQ:DWA): Movie Production, Theaters Industry. Market cap of $2.21B. The stock has lost 14.85% over the last quarter, but has outperformed analyst earnings estimates by an average of 26.64% over the last year.

The stock is a short squeeze candidate, with a short float at 6.72% (equivalent to 6.38 days of average volume).

4. Jones Apparel Group, Inc. (NYSE:JNY): Apparel Stores Industry. Market cap of $1.13B. The stock has lost 14.82% over the last quarter, but has outperformed analyst earnings estimates by an average of 23.77% over the last year.

5. American Superconductor Corporation (NASDAQ:AMSC): Diversified Electronics Industry. Market cap of $1.31B. The stock has lost 21.12% over the last quarter, but has outperformed analyst earnings estimates by an average of 23.39% over the last year.

6. Par Pharmaceutical Companies Inc. (Pending:PRX): Generic Industry. Market cap of $1.10B. The stock has lost 19.05% over the last quarter, but has outperformed analyst earnings estimates by an average of 21.17% over the last year.

The stock has performed poorly over the last month, losing 15.49%.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.