Back to top

Image: Bigstock

Falling Earnings Estimates Signal Weakness Ahead for GDS Holdings (GDS)

Read MoreHide Full Article

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 GDS Holdings Limited (GDS - 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 GDS.

A key reason for this move has been the negative trend in earnings estimates revisions. For the full year, we have seen two estimates moving down in the past 60 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from a loss of 41 cents per share two months ago to its current level of a loss of 49 cents.

Also, for the current quarter, GDS Holdings has seen two downward estimates revisions versus no revision in the opposite direction, dragging the consensus estimate to a loss of 13 cents a share from a loss of 10 cent over the past 60 days.

The stock has also seen some pretty dismal trading lately, as the share price has dropped 13.5% in the past month.

GDS HOLDINGS 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 Technology Services industry, you may instead consider a better-ranked stock – AstroNova, Inc. (ALOT - 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.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


See More Zacks Research for These Tickers


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


AstroNova, Inc. (ALOT) - free report >>

GDS Holdings (GDS) - free report >>

Published in