One such stock that you may want to consider dropping is Imperva Inc. (IMPV) 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 IMPV.
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 loss estimates to trend higher, going from a loss of $2.32 a share a month ago to its current level of a loss of $2.64 per share.
Also, for the current quarter, Imperva has seen 2 downward estimate revisions versus no revisions in the opposite direction, pushing the consensus loss estimate up to 76 cents a share from a loss of 70 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 56.60% 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 Adobe Systems Inc. (ADBE), Ansys, Inc. (ANSS) and Informatica Corporation (INFA). All these stocks carry a Zacks Rank #2 (Buy) and may be better selections at this time.
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