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 Pixelworks, Inc. (PXLW), 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 PXLW.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the loss estimate to widen, going from 5 cents a share a month ago to its current level of loss of 16 cents.
Also, for the current quarter, Pixelworks has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to loss of 13 cents from loss of 1 cent a share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.55% 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 Semiconductor industry, you may instead consider some better-ranked stocks including Lattice Semiconductor Corporation (LSCC), OmniVision Technologies, Inc. (OVTI) and O2Micro International Ltd. (OIIM). Among these stocks Lattice and OmniVision hold a Zacks Rank #1 (Strong Buy) and O2Micro holds a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks 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 >>
LATTICE SEMICON (LSCC): Free Stock Analysis Report
O2MICRO INT LTD (OIIM): Get Free Report
OMNIVISION TECH (OVTI): Free Stock Analysis Report
PIXELWORKS INC (PXLW): Free Stock Analysis Report
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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 1 estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the loss estimate to widen, going from 5 cents a share a month ago to its current level of loss of 16 cents.
Also, for the current quarter, Pixelworks has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to loss of 13 cents from loss of 1 cent a share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.55% 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 Semiconductor industry, you may instead consider some better-ranked stocks including Lattice Semiconductor Corporation (LSCC), OmniVision Technologies, Inc. (OVTI) and O2Micro International Ltd. (OIIM). Among these stocks Lattice and OmniVision hold a Zacks Rank #1 (Strong Buy) and O2Micro holds a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks 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 >>
LATTICE SEMICON (LSCC): Free Stock Analysis Report
O2MICRO INT LTD (OIIM): Get Free Report
OMNIVISION TECH (OVTI): Free Stock Analysis Report
PIXELWORKS INC (PXLW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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