One such stock that you may want to consider dropping is Galena Biopharma, Inc. (GALE) 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 GALE.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus loss estimates to trend higher, going from a loss of 39 cents a share a month ago to its current level of a loss of 43 cents per share.
Also, for the current quarter, Galena Biopharma has seen 1 downward estimate revision versus no revisions in the opposite direction, pushing the consensus loss estimate up to 13 cents a share from a loss of 12 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 18.9% 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 healthcare sector, you may instead consider some better-ranked stocks including Medivation, Inc. (MDVN), Emergent BioSolutions, Inc. (EBS) and PDL BioPharma, Inc. (PDLI). All these stocks carry a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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