What Makes Roundy’s (RNDY) a Sell? – Tale of the Tape

One such stock that you may want to consider dropping is Roundy's, Inc. (RNDY), 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 RNDY.

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 22 cents a share a month ago to its current level of a loss of 11 cents.

Also, for the current quarter, Roundy's has seen 5 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 7 cents a share from a loss of 1 cent over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.9% 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 Retail-Wholesale sector, you may instead consider some better-ranked stocks including TravelCenters of America LLC (TA), The Pantry, Inc. (PTRY) and Jamba, Inc. (JMBA). All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.

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