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What Falling Estimates & Price Mean for Cenveo (CVO)

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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 Cenveo 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 CVO.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 30 cents a share a month ago to its current level of 24 cents.

Also, for the current quarter, Cenveo has seen 1 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 9 cents a share from 11 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.7% 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 broader Industrial Product sector, you may instead consider some better-ranked stocks including Multi-Color Corp. (LABL - Free Report) , ARC Document Solutions, Inc. and Sealed Air Corporation (SEE - Free Report) . While Multi-Color Corp and Sealed Air Corporation hold a Zacks Rank #1 (Strong Buy), ARC Document Solutions holds a Zacks Rank #2 (Buy) and may be better selections at this time.

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