One such stock that you may want to consider dropping is The Chefs' Warehouse, Inc. (CHEF), 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 CHEF.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 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 88 cents a share a month ago to its current level of 76 cents.
Also, for the current quarter, The Chefs' Warehouse has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 10 cents a share from 12 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.0% 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 Miscellaneous Food Divesified industry, you may instead consider some better-ranked stocks including Unilever plc (UL), Diamond Foods, Inc. (DMND) and Inventure Foods, Inc. (SNAK). While Unilever holds a Zacks Rank #1 (Strong Buy), Diamond Foods and Inventure Foods carry a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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