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Tale of the Tape


Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is QuinStreet, Inc. (QNST - Snapshot Report), 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 QNST.

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 14 cents a share a month ago to its current level of 11 cents.

Also, for the current quarter, QuinStreet has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 1 penny a share from 4 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.3% 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 Internet Services Delivery industry, you may instead consider some better-ranked stocks including Vipshop Holdings Limited (VIPS - Snapshot Report), MakeMyTrip Limited (MMYT - Snapshot Report) and eLong Inc. (LONG - Snapshot Report). While Vipshop holds a Zacks Rank #1 (Strong Buy), MakeMyTrip and eLong carry a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.

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