One such stock that you may want to consider dropping is Newport Corp. (NEWP), 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 NEWP.
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 revision. This trend has caused the consensus estimate to trend lower, going from 29 cents a share a month ago to its current level of 26 cents.
Also, for the current quarter, Newport has seen 1 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to $1.20 a share from $1.40 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.7% 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 Instrument Scientific sector, you may instead consider a better-ranked stock – Mettler-Toledo International Inc. (MTD). The stock currently holds a Zacks Rank #2 (Buy) and may be better selection at this time.
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