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One such stock that you may want to consider dropping is Guess' Inc. (NYSE: GES), 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 GES.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 4 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 $2.01 a share a month ago to its current level of $1.57.
Also, for the current quarter, Guess has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 6 cents a share from earnings of 15 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.4% 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 textile-apparel sector, you may instead consider some better-ranked stocks including Hanesbrands Inc. (NYSE: HBI), Michael Kors Holdings Limited (NYSE: KORS), holding a Zacks Rank #1 (Strong Buy) and Columbia Sportswear Company (NASDAQ: COLM), with a Zacks Rank #2 (Buy), as they may be better selections at this time.
COLUMBIA SPORTS (NASDAQ: COLM): Free Stock Analysis Report
GUESS INC (NYSE: GES): Free Stock Analysis Report
HANESBRANDS INC (NYSE: HBI): Free Stock Analysis Report
MICHAEL KORS (NYSE: KORS): Free Stock Analysis Report
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