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 Town Sports International Holdings Inc. CLUB 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 CLUB.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 13 cents a share a month ago to its current level of a loss of 9 cents per share.
Also, for the current quarter, CLUB has seen 4 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to break-even point a share from 7 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 26.3% 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 services sector, you may instead consider some better-ranked stocks including Regal Entertainment Group RGC, Royal Caribbean Cruises Ltd. RCL and Speedway Motorsports Inc. TRK. All these stocks holds 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 >>
One such stock that you may want to consider dropping is Town Sports International Holdings Inc. CLUB 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 CLUB.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 13 cents a share a month ago to its current level of a loss of 9 cents per share.
Also, for the current quarter, CLUB has seen 4 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to break-even point a share from 7 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 26.3% 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 services sector, you may instead consider some better-ranked stocks including Regal Entertainment Group RGC, Royal Caribbean Cruises Ltd. RCL and Speedway Motorsports Inc. TRK. All these stocks holds 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 >>
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
TOWN SPORTS INT CLUB: Free Stock Analysis Report
ROYAL CARIBBEAN RCL: Free Stock Analysis Report
REGAL ENTMNT GP RGC: Free Stock Analysis Report
SPEEDWAY MOTORS TRK: Free Stock Analysis Report
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Zacks Investment Research
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