What Falling Estimates & Price Mean for Haverty Furniture (HVT)

Zacks

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 Haverty Furniture Companies Inc. (HVT), 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 HVT.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from $1.51 a share a month ago to its current level at $1.33.

Also, for the current quarter, Haverty Furniture has seen 2 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate to 25 cents a share from 34 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 14.4% 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 Retail sector, you may instead consider some better-ranked stocks including Famous Dave's of America Inc. (DAVE), Jack in the Box Inc. (JACK) and Restoration Hardware Holdings, Inc. (RH). While Famous Dave's of America and Jack in the Box sport a Zacks Rank #1 (Strong Buy), Restoration Hardware Holdings carries a Zacks Rank #2 (Buy). All these stocks may be better selections at this time.

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HAVERTY FURNITURE COS (HVT): Free Stock Analysis Report

FAMOUS DAVE'S OF AMER INC (DAVE): Free Stock Analysis Report

JACK IN BOX INC (JACK): Free Stock Analysis Report

RESTORATION HARDWARE HOLDINGS IN (RH): Free Stock Analysis Report


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