One such stock that you may want to consider dropping is Melco Crown Entertainment Limited (MPEL), 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 MPEL.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 6 estimates moving down in the past 30 days, compared with just 1 upward revision. This trend has caused the consensus estimate to trend lower, going from $1.27 a share a month ago to its current level of $1.23.
Also, for the current quarter, Melco Crown Entertainment has seen 6 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 26 cents a share from 29 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.3% 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 Gaming sector, you may instead consider a better-ranked stock like Isle of Capri Casinos, Inc. (ISLE) sporting a Zacks Rank #1 (Strong Buy).
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