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 Lions Gate Entertainment Corp. , 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 LGF.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 8 estimates moving down in the past 60 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 95 cents a share two months ago to its current level of 31 cents.
Also, for the current quarter, Lions Gate Entertainment has seen 3 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 22 cents a share from earnings of 35 cents over the past 60 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.7% 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 Movie/TV Production/Distribution industry, you may instead consider a better-ranked stock - World Wrestling Entertainment Inc. . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time.
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What Makes Lions Gate Entertainment (LGF) a Strong Sell?
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 Lions Gate Entertainment Corp. , 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 LGF.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 8 estimates moving down in the past 60 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 95 cents a share two months ago to its current level of 31 cents.
Also, for the current quarter, Lions Gate Entertainment has seen 3 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to a loss of 22 cents a share from earnings of 35 cents over the past 60 days.
LIONS GATE ETMT Price and Consensus
LIONS GATE ETMT Price and Consensus | LIONS GATE ETMT Quote
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.7% 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 Movie/TV Production/Distribution industry, you may instead consider a better-ranked stock - World Wrestling Entertainment Inc. . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>