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 Isle of Capri Casinos, Inc. (ISLE), 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 ISLE.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 4 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 an earnings of 7 cents a share a month ago to its current level at a loss of 7 cents.
Also, for the current quarter, Isle of Capri has seen 4 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 23 cents a share from 30 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.7% 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 Gaming industry, you may instead consider some better-ranked stocks including Galaxy Entertainment Group Limited (GXYEY), Wynn Resorts Ltd. (WYNN) and Century Casinos Inc. (CNTY). While Galaxy Entertainment and Wynn Resorts sports a Zacks Rank #1 (Buy), Century Casinos carries a Zacks rank #2 (Buy). With favorable Zacks Rank, these stocks may be better selection at this time.
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ISLE OF CAPRI CASINOS INC (ISLE): Free Stock Analysis Report
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