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 3D Systems Corporation (DDD - 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 #5 (Strong Sell) further confirms weakness in DDD.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen eight 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 53 cents a share a month ago to its current level of 45 cents.
Also, for the current quarter, 3D Systems has seen five downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to 12 cents a share from 15 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 25.3% 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 Computer & Technology sector, you may instead consider a better-ranked stock - CGI Group, Inc. (GIB - Free Report) . The stock currently holds a Zacks Rank #2 (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.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>