What Falling Estimates & Price Mean for Park Electrochemical (PKE) - Tale of the Tape

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 Park Electrochemical Corp. (PKE), 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 PKE.

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 consensus estimate to trend lower, going from $1.49 a share a month ago to its current level of $1.25.

Also, for the current quarter, Park Electrochemical has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 24 cents a share from 33 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.5% 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 Electronic-Miscellaneous Components industry, you may instead consider some better-ranked stocks including AU Optronics Corp. (AUO), IEC Electronics Corp. (IEC) and Sparton Corp. (SPA). All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

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PARK ELECTROCHE (PKE): Free Stock Analysis Report

AU OPTRONCS-ADR (AUO): Free Stock Analysis Report

IEC ELECTRS NEW (IEC): Free Stock Analysis Report

SPARTON CORP (SPA): Get Free Report

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