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 Zoe’s Kitchen, 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 #4 (Sell) further confirms weakness in ZOES.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen five estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from earnings of 3 cents a share a month ago to its current level of a loss of 3 cents.
Also, for the current quarter, Zoe’s Kitchen has seen four downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to 3 cents a share from 5 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 24.7% in the past month.
Zoe's Kitchen, Inc. Price and Consensus
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 Retail – Restaurants industry, you may instead consider a better-ranked stock – Red Robin Gourmet Burgers, Inc. (RRGB). 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 stocks here.
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Weakness Seen in Zoe's Kitchen (ZOES) Estimates: Should You Stay Away?
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 Zoe’s Kitchen, 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 #4 (Sell) further confirms weakness in ZOES.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen five estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from earnings of 3 cents a share a month ago to its current level of a loss of 3 cents.
Also, for the current quarter, Zoe’s Kitchen has seen four downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to 3 cents a share from 5 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 24.7% in the past month.
Zoe's Kitchen, Inc. Price and Consensus
Zoe's Kitchen, Inc. Price and Consensus | Zoe's Kitchen, Inc. 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 Retail – Restaurants industry, you may instead consider a better-ranked stock – Red Robin Gourmet Burgers, Inc. (RRGB). 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 stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>