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 AAR Corp. (AIR), 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 AIR.
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, with no upward revision. This trend has caused the consensus estimate to trend lower, going from $1.88 a share a month ago to its current level of $1.68.
Also, for the current quarter, AAR has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 37 cents a share from 45 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.5% 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 Aerospace sector, you may instead consider some better-ranked stocks including Curtiss-Wright Corporation (CW), Kratos Defense & Security Solutions, Inc. (KTOS) and Spirit AeroSystems Holdings, Inc. (SPR). All these stocks hold a Zacks Rank #1 (Strong 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
AAR CORP (AIR): Free Stock Analysis Report
CURTISS WRIGHT (CW): Free Stock Analysis Report
KRATOS DEFENSE (KTOS): Free Stock Analysis Report
SPIRIT AEROSYS (SPR): 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, with no upward revision. This trend has caused the consensus estimate to trend lower, going from $1.88 a share a month ago to its current level of $1.68.
Also, for the current quarter, AAR has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 37 cents a share from 45 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.5% 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 Aerospace sector, you may instead consider some better-ranked stocks including Curtiss-Wright Corporation (CW), Kratos Defense & Security Solutions, Inc. (KTOS) and Spirit AeroSystems Holdings, Inc. (SPR). All these stocks hold a Zacks Rank #1 (Strong 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
AAR CORP (AIR): Free Stock Analysis Report
CURTISS WRIGHT (CW): Free Stock Analysis Report
KRATOS DEFENSE (KTOS): Free Stock Analysis Report
SPIRIT AEROSYS (SPR): 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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