One such stock that you may want to consider dropping is Casino & Resort Inc. (MCRI), 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 MCRI.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 4 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 95 cents a share a month ago to its current level of 68 cents.
Also, for the current quarter, Monarch Casino & Resort has seen 3 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 23 cents a share from 30 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.4% 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 broader Consumer Discretionary sector, you may instead consider some better-ranked stocks including Zynga, Inc. (ZNGA), British Sky Broadcasting Group plc (BSYBY) and Cherokee Inc. (CHKE). While British Sky Broadcasting Group and Cherokee hold a Zacks Rank #1 (Strong Buy), Zynga holds a Zacks Rank #2 (Buy) and may be better selections at this time.
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