One such stock that you may want to consider dropping is ServiceSource International, Inc. (SREV) 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(Sell) further confirms weakness in SREV.
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 a loss of 26 cents a share a month ago to its current level of a loss of 37 cents per share.
Also, for the current quarter, ServiceSource International has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 11 cents a share from a loss of 8 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 32.4% 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 Blackbaud Inc. (BLKB), Citrix Systems, Inc. (CTXS) and Manhattan Associates, Inc. (MANH). All these stocks holds a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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