Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Neostem, Inc. (NBS), 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 NBS.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus loss estimate to widen, going from loss of $1.42 a share a month ago to its current loss level of $1.73.
Also, for the current quarter, Neostem has seen one downward estimate revision versus no revision in the opposite direction, dragging the consensus loss estimate to widen to a loss of 41 cents a share from loss of 32 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.7% 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 Medical/Dental – Supply industry, you may instead consider McKesson Corporation (MCK), which holds a Zacks Rank #2 (Buy). Moreover, if you are interested in the Medical sector, you may consider some better-ranked stocks including Almost Family Inc. (AFAM) and Endo International plc (ENDP). Both these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment