On Jun 8, Zacks Investment Research downgraded CUI Global, Inc. (CUI - Free Report) to a Zacks Rank #5 (Strong Sell). Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of underperforming the broader market.
In the last three months, CUI Global’s shares have lost nearly 44.74%, underperforming the gain of 5.60% recorded by the Zacks categorized Machinery Electrical industry.
Why the Downgrade?
Market sentiments have been weak for CUI Global for quite some time now, especially after the company reported lower-than-expected results for first-quarter 2017 on May 10. Loss of 17 cents per share was wider than the Zacks Consensus Estimate of a loss of 7 cents. Net sales were down 14% year over year.
Over the last 60 days, the Zacks Consensus Estimate on the stock widened from a loss of 1 cent to a loss of 31 cents for 2017 while the same for 2018 decreased 58.7% to earnings of 19 cents for 2018.
Also, the company has an Earnings ESP of -32.26% for 2017 and -20.00% for the second quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
CUI Global has a market capitalization of $70.6 million. Some better-ranked stocks in the machinery industry include Kennametal Inc. (KMT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Regal Beloit Corporation (RBC - Free Report) . While both Kennametal and Parker-Hannifin sport a Zacks Rank #1, Regal Beloit carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kennametal’s earnings estimates for fiscal 2017 and fiscal 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 6.24%.
Parker-Hannifin’s average earnings surprise for the last four quarters was a positive 14.94%. Also, earnings expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Regal Beloit’s earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 1.48%.
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