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What Falling Estimates & Price Mean for NorthStar Realty Finance (NRF)
July 09, 2014

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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 NorthStar Realty Finance Corp. , 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 NRF.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from $2.48 a share a month ago to its current level of $2.15 a share.
Also, for the current quarter, NorthStar Realty Finance has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 54 cents a share from 58 cents over the past 30 days.  
The stock also has seen some pretty dismal trading lately, as the share price has dropped 50.0% 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.
A better-ranked stock in the Real Estate industry include Henderson Land Development Co. Ltd. (HLDCY - Free Report) , which holds a Zacks Rank #2 (Buy).
If you are still interested in the Finance sector, you may instead consider some better-ranked stocks including AeroCentury Corp. (ACY - Free Report) and AerCap Holdings N.V. (AER - Free Report) , both holding a Zacks Rank #1 (Strong Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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