One such stock that you may want to consider dropping is Weight Watchers International, Inc. (WTW) 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 WTW.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 5 estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from earnings of $2.78 a share a month ago to its current level of $1.41.
Also, for the current quarter, WTW has seen 4 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 9 cents a share from earnings per share of 48 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 20.8% in the past month.
If you are still interested in the Consumer Services industry, you may instead consider a better-ranked stock like Monro Muffler Brake Inc. (MNRO).
Investors interested in the Consumer Discretionary sector may consider better-ranked stocks like Bally Technologies, Inc. (BYI) and Central Garden & Pet Company (CENT). Both carry a Zacks Rank #1 (Strong Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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