One such stock that you may want to consider dropping is magicJack VocalTec Ltd. (CALL), 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 CALL.
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 no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.27 a share a month ago to its current level of 84 cents.
Also, for the current quarter, magicJack VocalTec has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 15 cents a share from 32 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.4% 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 Internet Sector sector, you may instead consider some better-ranked stocks including DTS Inc. (DTSI), F5 Networks, Inc. (FFIV) and Support.com, Inc. (SPRT). All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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