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Should You Get Rid of ARC Document Solutions (ARC) Now?

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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 ARC Document Solutions, Inc. (ARC - Free 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 ARC.

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 32  cents a share a month ago to its current level of 22 cents.

Also, for the current quarter, ARC Document Solutions has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 3 cents a share from 9 cents over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 22.1% in the past month.

ARC DOC SOLUT Price and Consensus

ARC DOC SOLUT Price and Consensus | ARC DOC SOLUT 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 Printing-Commercial industry, you may instead consider a better-ranked stock - Multi-Color Corp. . The stock currently holds a Zacks Rank #2 (Buy) and may be a better selection at this time.

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