What Makes Vascular Solutions (VASC) a Strong Sell?


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 Vascular Solutions Inc. (VASC), 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 VASC.

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 with no upward revision. This trend has caused the consensus estimate to trend lower, going from 81 cents a share a month ago to its current level of 72 cents.

Also, for the current quarter, Vascular Solutions has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 18 cents a share from 20 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.3% 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 Products industry, you may instead consider some better-ranked stocks including Enzymotec Ltd. (ENZY), NeuroMetrix Inc. (NURO) and Cardica Inc. (CRDC). While Enzymotec holds a Zacks Rank #1 (Strong Buy), NeuroMetrix and Cardica carry a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.

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VASCULAR SOLUTIONS INC (VASC): Free Stock Analysis Report

CARDICA INC (CRDC): Free Stock Analysis Report

ENZYMOTEC LTD ORD (ENZY): Free Stock Analysis Report

NEUROMETRIX INC (NURO): Free Stock Analysis Report

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