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It’s safe to say more than a few companies have taken it on the chin with recent volatility in the markets. At the same time some have fallen much further than others. Now the question is why? While there are plenty of reasons and arguments why certain names have dropped heavily, overall it looks like investors are running into stocks with strong fundamentals, which should allow stronger companies to better withstand economic uncertainty.

We ran a screen for company’s that had dramatically underperformed the S&P 500 in the last month and weak profitability (ROE TTM<3%). From this narrowed pool of names we screened for companies that also had poor top line performance (1-year fiscal revenue growth<3%).

The list is ranked from worst to least worst by 1-month performance:

1. Dendreon Corp (NASDAQ:DNDN)

Sector

Healthcare

Industry

Biotechnology

Market Cap

$1795 million

Beta

4.04

Analyst Sentiment

11/20-List Hold/Neutral (Neutral)

The company develops and sells cancer treatment options for patients. The company’s 1 month return is -69.08%. DNDN’s 1-year fiscal revenue growth rate is -9.01%. The company’s return on equity is -76.28%. The short interest for the company is 11% as of 8/15/2011.

2. MGIC Investment Corporation (NYSE:MTG)

Sector

Financial Services

Industry

Insurance - Property and Casualty

Market Cap

$382 million

Beta

3.11

Analyst Sentiment

5/7-List Buy/Outperform (Bullish)

The company provides private mortgage insurance to the mortgage industry in the US. The company’s 1 month return is -57.59%. MTG’s 1-year fiscal revenue growth rate is -11%. The company’s return on equity is -24.31%. The short interest for the company is 11% as of 8/15/2011.

3. CoreLogic, Inc. (NYSE:CLGX)

Sector

Industrials

Industry

Business Services

Market Cap

$841 million

Beta

0.8

Analyst Sentiment

5/6-List Hold/Neutral (Neutral)

The company sells property, financial, consumer information, and more to a variety of different industries in the US. The company’s 1 month return is -50.28%. CLGX’s 1-year fiscal revenue growth rate is -4.55%. The company’s return on equity is -4.48%. The short interest for the company is 4.10% as of 8/15/2011.

4. Patriot Coal Corporation (PCX)

Sector

Basic Materials

Industry

Coal

Market Cap

$1122 million

Beta

3.27

Analyst Sentiment

7/15-List Hold/Neutral (Neutral)

The company produces and sells thermal coal primarily to electricity generators in the US. The company’s 1 month return is -50.22%. PCX’s 1-year fiscal revenue growth rate is -0.5%. The company’s return on equity is -7.43%. The short interest for the company is 12% as of 8/15/2011.

5. USG Corp (NYSE:USG)

Sector

Basic Materials

Industry

Building Materials

Market Cap

$757 million

Beta

2.9

Analyst Sentiment

12/14-List Hold/Neutral (Neutral)

The company manufactures and sells building materials worldwide. The company’s 1 month return is -48.46%. USG’s 1-year fiscal revenue growth rate is -9.15%. The company’s return on equity is -62.51%. The short interest for the company is 22% as of 8/15/2011.

6. Flagstar Bancorp, Inc. (NYSE:FBC)

Sector

Financial Services

Industry

Savings and Cooperative Banks

Market Cap

$341 million

Beta

2.01

Analyst Sentiment

4/4-List Hold/Neutral (Neutral)

The company operates Flagstar Bank. The company’s 1 month return is -47%. FBC’s company’s 1-year fiscal revenue growth rate is -14.36%. The company’s return on equity is -28.54%. The short interest for the company is 11% as of 8/15/2011.

7. Monster Worldwide, Inc. (NYSE:MWW)

Sector

Industrials

Industry

Staffing and Outsourcing Services

Market Cap

$939 million

Beta

2.21

Analyst Sentiment

10/16-List Buy/Outperform (Bullish)

The company offers online employment solutions in North America, Europe, and Asia. The company’s 1 month return is -45.58%. MWW’s 1-year fiscal revenue growth rate is 0.99%. The company’s return on equity is 0.52%. The short interest for the company is 14% as of 8/15/2011.

8. Mueller Water Products, Inc. (NYSE:MWA)

Sector

Industrials

Industry

Diversified Industrials

Market Cap

$317 million

Beta

2.62

Analyst Sentiment

7/9-List Hold/Neutral (Neutral)

The company manufactures and sells a range of water flow control, infrastructure, and piping component system products. The company’s 1 month return is -42.53%. MWA’s 1-year fiscal revenue growth rate is -6.33%. The company’s return on equity is -8.81%. The short interest for the company is 7.10% as of 8/15/2011.

9. Pilgrims Pride Corp. (NASDAQ:PPC)

Sector

Consumer Defensive

Industry

Farm Products

Market Cap

$635 million

Beta

3.07

Analyst Sentiment

3/6-List Hold/Neutral (Neutral)

The company produces and sells fresh and frozen chicken products in the United States. The company’s 1 month return is -42.19%. PPC’s 1-year fiscal revenue growth rate is -2.33%. The company’s return on equity is -16.55%. The short interest for the company is 11% as of 8/15/2011.

10. Digital River, Inc. (NASDAQ:DRIV)

Sector

Technology

Industry

Software - Application

Market Cap

$745 million

Beta

1.52

Analyst Sentiment

10/15-List Hold/Neutral (Neutral)

Digital River, Inc., together with its subsidiaries, provides outsourced e-commerce solutions worldwide. The company’s 1 month return is -41.95%. DRIV’s 1-year fiscal revenue growth rate is -10.04%. The company’s return on equity is 2.67%. The short interest for the company is 11% as of 8/15/2011.

We hope this list helps investors as they do their own due diligence on companies on companies that have dramatically underperformed the S&P 500 recently.

Source: 10 Heavily Sold Stocks With Poor Top Line Growth And Weak Profitability