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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4. Akamai Technologies ( AKAM) is a riches-to-rags story. Having soared 86% in 2010, the stock has proceeded to drop 29% in 2011, erasing much of its prior gain. Akamai was in positive territory during January, but a correction and then a disappointing first-quarter report derailed the stock.

Akamai, which provides products to accelerate and improve delivery of content over the Internet, offered an outlook that disappointed investors.

The company beat consensus earnings and sales estimates in both of the previous quarters, but management's second-quarter guidance for both sales and earnings narrowly missed Wall Street's forecast. The stock is now cheap relative to its peer group, trading at a forward earnings multiple of 18, a book value multiple of 2.8 and a cash flow multiple of 15, industry discounts of 61%, 63% and 25%. Around 48% of analysts rate the stock "buy."

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3. Tellabs ( TLAB) is a communications-equipment maker, building access products for broadband and offering network consulting services. Tellabs' trailing 12-month sales have grown 7.6% and its net income has increased 37%. However, it swung to a first-quarter adjusted loss of 3 cents a share, missing the consensus forecast, albeit marginally. Sales dropped 15%, also missing the consensus, sending Tellabs' shares down 9% in reaction to the report.

Tellabs is pouring money into mobile Internet research and development, boosting investment 16% in the first quarter, now equivalent to an eye-catching 25% of sales. While management is taking aggressive action, that suggests the current product portfolio is waning in relevance, hurting sentiment for the stock, which has fallen to a 52-week low. Of the 23 analysts covering Tellabs' shares, just one rates them a "buy."

Tellabs ranks as one of the worst-rated stocks in the S&P 500. It is notably cheap, selling for a book value multiple of 0.9, a sales multiple of 1.2 and a cash flow multiple of 12, 71%, 70% and 47% peer discounts. But, value is no guarantee of performance. Analysts forecast a second-quarter adjusted loss of 2 cents a share and a 19% drop in sales, presenting risk to the share price. Tellabs has plummeted 34% in 2011 and is down 3.7% in the past week, indicating pessimism.

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2. Monster Worldwide ( MWW) provides online-employment services, running job-posting Web sites in North America, Europe and Asia.

Hurt by the recession, Monster's net sales have dropped 11%, annualized, since 2008 as its stock delivered an annualized decline of 18%. Despite evidence of an improving job market, Monster has continued to struggle. It posted GAAP losses for the first three quarters of 2010, but broke even in the fourth. Monster swung to an adjusted first-quarter profit of 5 cents a share, beating consensus for 2 cents, but its stock fell 7.8% in reaction, as sales missed and guidance remained lackluster.

Analysts have a generally favorable view of Monster, which garners eight "buy" calls, five "hold" recommendations and three "sell" ratings. The stock isn't cheap, despite underperformance, costing a forward earnings multiple of 19, a book value multiple of 1.6, a sales multiple of 1.9 and a cash flow multiple of 17 -- peer-group discounts, but premiums to S&P 500 averages. Monster has a beta value of 2.1, tending to double the market's day-to-day movements.

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1. AIG ( AIG), still majority-owned by the U.S. government, has suffered a stock-price drop of 50% in 2011 after having rallied 47% in the fourth quarter of 2010. AIG is down 1% in the past 12-months.

The abnormal volatility is a reflection of both operating performance and speculators' interest in the stock. AIG swung to a first-quarter adjusted profit of $1.30 a share, outperforming the consensus estimate.

Despite the bottom-line beat, AIG's stock declined after the release, as sales dropped 6%. AIG tried to repurchase high-yielding Maiden Lane II assets, now belonging to the Federal Reserve Bank of New York, for a bit less than $16 billion. Investors were encouraged by the move, deemed a step towards independence. When the offer was rejected by the Fed, AIG's stock sold off. Then, the U.S. government sold 200 million shares, hurting prices.

AIG is still in the process of whittling down operations, paying off debt and refining its business model. Investors, impatient with the turnaround lag, have apparently lost interest in 2011. Costing a free-cash-flow multiple of just 0.3, AIG's stock is cheap.

-- Written by Jake Lynch in Boston.

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