BOSTON ( TheStreet) -- While the benchmark S&P 500 Index has advanced almost 6% in 2011, not all index components have fared as well. The following five have underperformed by the widest margin, posting major declines as the broader market added to 2010's gains.

Some of these stocks have fallen to discount valuations and are worth considering as long-term holdings. On the other hand, if problems persist for these companies, their stocks will fall farther.

5. Hudson City Bancorp ( HCBK) offers retail banking services in New Jersey and New York. Hudson's stock has stumbled in 2011, falling 29% so far. It dropped 7.2% in 2010. Hudson's adjusted first-quarter earnings decreased 37% to 19 cents, but beat the consensus forecast by 8%. On a GAAP basis, Hudson suffered a loss of $556 million, or $1.13 a share, due to a balance sheet restructuring. Although the deleveraging is a long-run positive, it dampened the quarterly report. Furthermore, the board cut the quarterly dividend from 15 cents to 8 cents.

Since these negatives are now behind the company, putting its business and stock on a more a sustainable upward trajectory, Hudson is attractive. Its current eight cent quarterly distribution still translates to a 3.3% dividend yield. And, the stock is cheap. It trades at a forward earnings multiple of less than 11, a book value multiple of 1.0 and a sales multiple of 1.7, sizable industry discounts. Analysts are notably pessimistic, with just one rating the stock "buy," 16 rating it "hold" and three ranking it "sell." Financial-sector focused KBW has a "market perform" rating on the stock, but values it at $11. Researchers forecast a 35% dip in second-quarter earnings, presenting risk.

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