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Bear Of The Day: Brookdale Senior Living (BKD)

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Brookdale Senior Living (BKD - Free Report) recently saw its Zacks Rank slip to the lowest level it can go. The stock is now a Zack Rank #5 (Strong Sell) and today it is the Bear of the Day.  Let's take a look at why this stock is the Bear of the Day.

Description

Brookdale Senior Living Inc. is a leading owner and operator of senior living facilities throughout the United States. The Company is committed to providing an exceptional living experience through properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents. The Company owns and operates independent, assisted and dementia-care facilities.

Earnings History

One of the factors that determine the Zacks Rank is the earnings history.  It isn't the biggest factor, but it is in the mix.  The earnings history for BKD is not good, with the company missing the Zacks Consensus Estimate in each of the last four reports.

Estimates

The biggest factor that determines the Zacks Rank is the move in earnings estimates.  The analysts that cover the stock have been lowering their estimates as reflected in the move of the Zacks Consensus Estimate.  Analysts were looking for a gain of $0.59 for 2017 just 90 days ago, but that has changed and it has done so in a big way.  The current consensus estimate is calling for a loss of $1.33.  That is a huge reversal for this year.

The 2018 number also saw a huge reversal. It moved from a gain of $0.66 90 days ago to the current level of a loss of $0.51.

Valuation

With the earnings estimates now a negative number the forward PE is not a number we can use.  The price to book has dropped down to 1.1x and that should interest the value investors that are reading this. Price to sales is only at 0.4x, but that often happens when a stock sees a significant drop in price.

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