Year-to-date the S&P/ASX 20 (Index: ^AXTL) (ASX: XTL) has gained just under 2% thanks partly to the strong performance of Transurban Group (ASX: TCL), Woolworths Limited (ASX: WOW), and CSL Limited (ASX: CSL).
However, the index would have gained far more had it not been for three particular under-performers. Here's why these three shares have been a drag on the index this year:
The Brambles Limited (ASX: BXB) share price has dropped a massive 25% in 2017. The supply-chain logistics company's shares have come under heavy selling pressure this year after it advised that its North American business was struggling with both revenue and cost pressures. As a result, management was forced to lower its full-year guidance. For FY 2017 the company now expects underlying profit to be flat. Whilst Brambles' shares look far more attractive today than last year, I still believe there are better options out there for investors.
The Telstra Corporation Ltd (ASX: TLS) share price has fallen a disappointing 9% so far this year. The telco giant's shares sank after it reported a 14% drop in half-year net profit after tax last month. Whilst this was a big disappointment, I trust management will deliver on its promise of a stronger second-half with full-year mid-to-high single-digit profit growth. In light of this I believe the current share price is a buying opportunity for investors. Especially those in search of dividends. After all, at present Telstra's shares provide a trailing fully franked 6.7% dividend
The Westfield Corp Ltd (ASX: WFD) share price has fallen 6% so far this year. In February the shopping centre operator reported an 11% drop in Funds From Operations (FFO) to US$700 million. Whilst the drop was a slight worry, I was pleased to see its Flagship properties continue their strong performance. Furthermore, the company has a number of significant developments in its pipeline, which I expect to provide it with solid long-term growth. However, I wouldn't class it as a bargain buy right now and would suggest investors hold off an investment for the time being.
