Back to top

Image: Bigstock

What Falling Estimates & Price Mean for Lawson Products (LAWS)

Read MoreHide Full Article

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 Lawson Products Inc. , 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 LAWS.

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 estimate to trend lower, going from earnings of 30 cents a share a month ago to its current level of a loss of 10 cents.

Also, for the current quarter, Lawson Products has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 4 cents a share from 25 cents over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.4% in the past month.

LAWSON PRODUCTS Price and Consensus

LAWSON PRODUCTS Price and Consensus | LAWSON PRODUCTS Quote

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 Industrial Products sector, you may instead consider a better-ranked stock - Global Brass and Copper Holdings, 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 >>

Published in