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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 NeoPhotonics Corporation , 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 NPTN.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimates 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 25 cents a share a month ago to its current level of 16 cents per share.
Also, for the current quarter, NeoPhotonics has seen 1 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to earnings of 3 cents a share from earnings of 12 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.5% 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 Retail Wholesale sector, you may instead consider a better-ranked stock Insight Enterprises Inc. (NSIT - Free Report) . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
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Should You Get Rid of NeoPhotonics (NPTN) Now?
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 NeoPhotonics Corporation , 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 NPTN.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimates 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 25 cents a share a month ago to its current level of 16 cents per share.
Also, for the current quarter, NeoPhotonics has seen 1 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to earnings of 3 cents a share from earnings of 12 cents over the past 30 days.
NEOPHOTONICS CP Price and Consensus
NEOPHOTONICS CP Price and Consensus | NEOPHOTONICS CP Quote
The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.5% 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 Retail Wholesale sector, you may instead consider a better-ranked stock Insight Enterprises Inc. (NSIT - Free Report) . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>