One such stock that you may want to consider dropping is Vera Bradley, Inc. (VRA), 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 VRA.
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 no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.21 a share a month ago to its current level of 83 cents.
Also, for the current quarter, Vera Bradley has seen 3 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 2 cents a share from 17 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 22.6% 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.
Investors still interested in the retail apparel store industry may consider a better-ranked stock like Citi Trends, Inc. (CTRN), carrying a Zacks Rank #1 (Strong Buy).
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