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 Ellie Mae, 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 ELLI.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen seven 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 $1.89 a share a month ago to its current level of $1.57.
Also, for the current quarter, Ellie Mae has seen six downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 43 cents a share from 61 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 25.5% 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 Internet - Software and Services industry, you may instead consider a better-ranked stock - Adesto Technologies Corporation . The stock currently holds a Zacks Rank #2 (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' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
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Weakness Seen in Ellie Mae (ELLI) Estimates: Should You Stay Away?
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 Ellie Mae, 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 ELLI.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen seven 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 $1.89 a share a month ago to its current level of $1.57.
Also, for the current quarter, Ellie Mae has seen six downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 43 cents a share from 61 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 25.5% in the past month.
Ellie Mae, Inc. Price and Consensus
Ellie Mae, Inc. Price and Consensus | Ellie Mae, Inc. 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 Internet - Software and Services industry, you may instead consider a better-ranked stock - Adesto Technologies Corporation . The stock currently holds a Zacks Rank #2 (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' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>