One such stock that you may want to consider dropping is Mattel, Inc. (MAT), 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 MAT.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with just no upward revisions. This trend has caused the consensus estimate to trend lower, going from $2.43 a share a month ago to its current level of $2.17.
Also, for the current quarter, Mattel has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to $1.02 a share from $1.17 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.4% 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 Gaming sector, you may instead consider some better-ranked stocks including Electronic Arts Inc. (EA), Hasbro Inc. (HAS) and Take-Two Interactive Software Inc. (TTWO). While Electronic Arts sports a Zacks Rank #1 (Strong Buy), Hasbro and Take-Two Interactive hold a Zacks Rank #2 (Buy) and may be better selections at this time.
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