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 RetailMeNot, Inc. SALE, 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 SALE.
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 revisions. This trend has caused the consensus estimate to trend lower, going from 91cents a share a month ago to its current level of 74 cents.
Also, for the current quarter, RetailMeNot has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 12 cents a share from 14 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.6% 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 services sector, you may instead consider some better-ranked stocks including Bitauto Holdings Limited BITA, eLong Inc. LONG and Vipshop Holdings Limited VIPS. While Bitauto Holdings carries a Zacks Rank #1 (Strong Buy), eLong and Vipshop Holdings 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 >>
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
BITAUTO HOLDNGS BITA: Free Stock Analysis Report
ELONG INC-ADR LONG: Free Stock Analysis Report
RETAILMENOT INC SALE: Free Stock Analysis Report
VIPSHOP HOLDNGS VIPS: Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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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 revisions. This trend has caused the consensus estimate to trend lower, going from 91cents a share a month ago to its current level of 74 cents.
Also, for the current quarter, RetailMeNot has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 12 cents a share from 14 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.6% 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 services sector, you may instead consider some better-ranked stocks including Bitauto Holdings Limited BITA, eLong Inc. LONG and Vipshop Holdings Limited VIPS. While Bitauto Holdings carries a Zacks Rank #1 (Strong Buy), eLong and Vipshop Holdings 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 >>
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
BITAUTO HOLDNGS BITA: Free Stock Analysis Report
ELONG INC-ADR LONG: Free Stock Analysis Report
RETAILMENOT INC SALE: Free Stock Analysis Report
VIPSHOP HOLDNGS VIPS: 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.
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