One such stock that you may want to consider dropping is Infoblox Inc. (BLOX) 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 BLOX.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 estimates moving down in the past 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from loss of 11 cents a share a month ago to loss of 36 cents now.
Also, for the current quarter, Infoblox has seen 2 downward estimate revisions versus only 1 revision in the opposite direction, dragging the consensus estimate to loss of 6 cents a share from loss of 4 cents a share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 49.1% 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 Computer Software sector Autodesk, Inc. (ADSK), Open Text Corporation (OTEX) and Aspen Technology, Inc. (AZPN). While Autodesk and Open Text carry a Zacks Rank #1 (Strong Buy), Aspen Technology holds a Zacks Rank #2 (Buy).
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