One such stock that you may want to consider dropping is XO Group Inc. (XOXO), 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 XOXO.
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 revision. This trend has caused the consensus estimate to trend lower, going from 65 cents a share a month ago to its current level of 4 cents.
Also, for the current quarter, XO Group has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 1 cent a share from earnings of 7 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.6% 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 Internet Content Industry, you may instead consider better-ranked stocks like China Distance Education Holdings Limited (DL), Giant Interactive Group, Inc. (GA) and Global Eagle Entertainment Inc. (ENT). All these stocks have a Zacks Rank #2 (Buy).
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