One such stock that you may want to consider dropping is Stoneridge Inc. (SRI), 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 SRI.
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 76 cents a share a month ago to its current level of 59 cents.
Also, for the current quarter, Stoneridge has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 16 cents a share from 22 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.8% 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 and miscellaneous components manufacturing sector, you may instead consider some better-ranked stocks including AAC Technologies Holdings Inc. (AACAY), KEMET Corp. (KEM) and TE Connectivity Ltd. (TEL). While AAC Technologies hold a Zacks Rank #1 (Strong Buy), KEMET and TE Connectivity holds a Zacks Rank #2 (Buy) and may be better selections at this time.
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