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 Baidu, Inc. BIDU, 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 #5 (Strong Sell) further confirms weakness in BIDU.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 7 estimates moving down in the past 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from $6.57 a share a month ago to its current level at $5.40.
Also, for the current quarter, Baidu has seen 1 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate to 94 cents a share from $1.09 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12% 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 Services industry, you may instead consider some better-ranked stocks including Akamai Technologies, Inc. AKAM, Facebook, Inc. FB and Interxion Holding NV INXN. All these stocks carry a Zacks Rank #2 (Buy) and may be better selections at this time.
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 >>
BAIDU INC BIDU: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Market News and Data brought to you by Benzinga APIsOne such stock that you may want to consider dropping is Baidu, Inc. BIDU, 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 #5 (Strong Sell) further confirms weakness in BIDU.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 7 estimates moving down in the past 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from $6.57 a share a month ago to its current level at $5.40.
Also, for the current quarter, Baidu has seen 1 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate to 94 cents a share from $1.09 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12% 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 Services industry, you may instead consider some better-ranked stocks including Akamai Technologies, Inc. AKAM, Facebook, Inc. FB and Interxion Holding NV INXN. All these stocks carry a Zacks Rank #2 (Buy) and may be better selections at this time.
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 >>
BAIDU INC BIDU: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
