Back to top

Tale of the Tape

Zacks Equity Research

Falling Earnings Estimates Signal Weakness Ahead for INSYS Therapeutics (INSY)
October 13, 2016

GWPH INSY

Trades from $3

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 INSYS Therapeutics, Inc. (INSY - 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 INSY.

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 60 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 23 cents a share a month ago to its current level of 8 cents.

Also, for the current quarter, INSYS Therapeutics has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to breakeven a share from 6 cents over the past 60 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.7% in the past month.

INSYS THERAP Price and Consensus

 

INSYS THERAP Price and Consensus | INSYS THERAP 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 Medical Products industry, you may instead consider a better-ranked stock - GW Pharmaceuticals plc (GWPH - 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 (Strong Buy) stocks here.

Confidential from Zacks

 Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

GW PHARMA-ADR (GWPH) - free report >>

INSYS THERAP (INSY) - free report >>