Should You Get Rid of Comverse (CNSI) Now? – Tale of the Tape

One such stock that you may want to consider dropping is Comverse, Inc. (CNSI), 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 CNSI.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus loss estimate to widen, going from a loss of 13 cents a share a month ago to its current level of a loss of $2.18.

Also, for the current quarter, Comverse has seen 1 downward estimate revision versus no revisions in the opposite direction, widening the consensus loss estimate to a loss of 94 cents a share from a loss of 16 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.2% 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 communication network software sector, you may instead consider a better-ranked stock – NeuStar, Inc. (NSR). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be better selection at this time.

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