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One such stock that you may want to consider dropping is Hovnanian Enterprises Inc. HOV, 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 HOV.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 4 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 43 cents a share a month ago to its current level of 25 cents.
Also, for the current quarter, Hovnanian has seen 3 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 3 cents a share from 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.49% 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 Residential and Commercial Building sector, you may instead consider some better-ranked stocks including DR Horton Inc. DHI, NVR, Inc. NVR and Beazer Homes USA Inc. BZH. DR Horton and NVR hold a Zacks Rank #2 (Buy) while Beazer Homes holds a Zacks Rank#3 (Hold). These stocks may be better selections at this time.
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HOVNANIAN ENTRP HOV: Free Stock Analysis Report
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