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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 ADTRAN, Inc. (ADTN - 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 ADTN.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen four estimates moving down in the past 30 days, compared with just no upward revisions. This trend has caused the consensus estimate to trend lower, going from 94 cents a share a month ago to its current level of 30 cents.
Also, for the current quarter, ADTRAN has seen three downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 17 cents a share from earnings of 16 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 28.1% 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 Computer and Technology sector, you may instead consider a better-ranked stock – Analog Devices, Inc. (ADI - 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 stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Why ADTRAN (ADTN) Could Be Positioned for a Slump
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 ADTRAN, Inc. (ADTN - 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 ADTN.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen four estimates moving down in the past 30 days, compared with just no upward revisions. This trend has caused the consensus estimate to trend lower, going from 94 cents a share a month ago to its current level of 30 cents.
Also, for the current quarter, ADTRAN has seen three downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 17 cents a share from earnings of 16 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 28.1% in the past month.
ADTRAN, Inc. Price and Consensus
ADTRAN, Inc. Price and Consensus | ADTRAN, 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 Computer and Technology sector, you may instead consider a better-ranked stock – Analog Devices, Inc. (ADI - 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 stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>