Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is XO Group Inc. XOXO, which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in XOXO.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 65 cents a share a month ago to its current level of 4 cents.
Also, for the current quarter, XO Group has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 1 cent a share from earnings of 7 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.6% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Internet Content Industry, you may instead consider better-ranked stocks like China Distance Education Holdings Limited DL, Giant Interactive Group, Inc. GA and Global Eagle Entertainment Inc. (ENT). All these stocks have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
One such stock that you may want to consider dropping is XO Group Inc. XOXO, which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in XOXO.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 65 cents a share a month ago to its current level of 4 cents.
Also, for the current quarter, XO Group has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 1 cent a share from earnings of 7 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.6% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Internet Content Industry, you may instead consider better-ranked stocks like China Distance Education Holdings Limited DL, Giant Interactive Group, Inc. GA and Global Eagle Entertainment Inc. (ENT). All these stocks have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
CHINA DISTANCE DL: Free Stock Analysis Report
GLOBAL EAGL ENT (ENT): Free Stock Analysis Report
GIANT INTERACTV GA: Free Stock Analysis Report
XO GROUP INC XOXO: Free Stock Analysis Report
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Zacks Investment Research
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