One such stock that you may want to consider dropping is Extreme Networks Inc. (EXTR), 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 #4 (Sell) further confirms weakness in EXTR.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 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 $0.37 a share a month ago to its current level of $0.22.
Also, for the current quarter Extreme Networks has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of $0.01 a share from $0.09 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.5% 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 technology sector, you may instead consider some better-ranked stocks including Allot Communications Ltd. (ALLT), Brocade Communications Systems, Inc. (BRCD) and Netgear Inc. (NTGR). All these stocks carry Zacks Rank #2 (Buy) and may be better selections at this time.
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