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Falling Earnings Estimates Signal Weakness Ahead for Cogint (COGT)

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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 Cogint, Inc. (COGT - 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 COGT.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimate moving down in the past 30 days, compared with just no upward revisions. This trend has caused the consensus estimate to trend lower, going from a loss of 96 cents a share a month ago to its current level of a loss of $1.02.

Also, for the current quarter, Cogint has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 16 cents a share from a loss of 10 cents over the past 30 days. 

The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.3% in the past month.

Cogint 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  Computers - IT Services industry, you may instead consider a better-ranked stock – Fair Isaac Corporation (FICO - 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  stocks here.

Zacks Editor-in-Chief Goes "All In" on This Stock

Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

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Fair Isaac Corporation (FICO) - free report >>

Cogent Biosciences, Inc. (COGT) - free report >>

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