One such stock that you may want to consider dropping is LeapFrog Enterprises Inc. (LF), 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 LF.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 5 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 $0.57 a share a month ago to its current level of $0.21.
Also, for the current quarter, LeapFrog Enterprises has seen 4 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of $0.20 a share from a loss of $0.06 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.2% 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 consumer goods sector, you may instead consider some better-ranked stocks including Glu Mobile, Inc. (GLUU), Take-Two Interactive Software Inc. (TTWO) and The Walt Disney Company (DIS). While Glu Mobile hold a Zacks Rank #1 (Strong Buy), Take-Two Interactive Software and Walt Disney carry a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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LEAP FROG ENTERPRISES CLA (LF): Free Stock Analysis Report
GLU MOBILE INC (GLUU): Free Stock Analysis Report
TAKE-TWO INTERACT SOFTWARE (TTWO): Free Stock Analysis Report
THE WALT DISNEY CO (DIS): Free Stock Analysis Report
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