One such stock that you may want to consider dropping is API Technologies Corp. (NASDAQ: ATNY), 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 ATNY.
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 9 cents a share a month ago to its current level of break even.
Also, for the current quarter, API Technologies has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to loss of 1 cent a share from earnings of 2 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 23.68% 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 Huntington Ingall Industries, Inc. (NYSE: HII), TransDigm Group Incorporated (NYSE: TDG) and General Dynamics Corp. (NYSE: GD).Among these stocks Huntington and TransDigm hold a Zacks Rank #1 (Strong Buy) and General Dynamic holds a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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API TECH CORP (NASDAQ: ATNY): Free Stock Analysis Report
GENL DYNAMICS (NYSE: GD): Free Stock Analysis Report
HUNTINGTON INGL (NYSE: HII): Free Stock Analysis Report
TRANSDIGM GROUP (NYSE: TDG): Free Stock Analysis Report
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