One such stock that you may want to consider dropping is RadioShack Corp. (RSH) 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 RSH.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 9 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 a loss of $1.42 a share a month ago to its current level of a loss of $2.30.
Also, for the current quarter, RadioShack has seen 4 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 35 cents a share from a loss of 49 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.6% 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 Retail-whole sales industry, you may instead consider some better-ranked stocks including Dunkin' Brands Group, Inc. (DNKN), Burlington Stores, Inc. (BURL) and AutoZone, Inc. (AZO). All these stocks carry a Zacks Rank #2 (Buy).
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