What Falling Estimates & Price Mean for Opko Health (OPK)

Zacks Equity Research

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 Opko Health, Inc. (OPK), 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 OPK.

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 60 days, compared with no upward revision. This trend has caused the loss estimate to widen, going from a loss of 20 cents a share a month ago to its current level of loss of 38 cents.

Also, for the current quarter, Opko Health has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the loss estimate down to loss of 11 cents a share from loss of 5 cents over the past 60 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.82% 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 Medical Instruments industry, you may instead consider some better-ranked stocks including Delcath Systems, Inc. (DCTH), Syneron Medical Ltd. (ELOS) and Accuray Incorporated (ARAY). Among these stocks Delcath Systems and Syneron Medical hold a Zacks Rank #1 (Strong Buy) and Accuray holds a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.

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OPKO HEALTH INC (OPK): Free Stock Analysis Report

SYNERON MEDICAL LTD ORD (ELOS): Free Stock Analysis Report

DELCATH SYSTEMS INC (DCTH): Free Stock Analysis Report

ACCURAY (ARAY): Free Stock Analysis Report


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