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 Points International Ltd. (PCOM), 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 PCOM.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 3 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 68 cents a share a month ago to its current level of 50 cents.
Also, for the current quarter, Points International has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 7 cents a share from 11 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.4% 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 Internet Content Industry, you may instead consider better-ranked stocks like WebMD Health Corp. (WBMD), China Distance Education Holdings Limited (DL) and Giant Interactive Group, Inc. (GA). While WebMD sports a Zacks Rank #1 (Strong Buy), China Distance Education Holdings and Giant Interactive have a Zacks Rank #2 (Buy).
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POINTS INTERNATIONAL LTD (PCOM): Free Stock Analysis Report
WEBMD HEALTH CORP (WBMD): Free Stock Analysis Report
CHINA DISTANCE EDUCATION HOLDING (DL): Free Stock Analysis Report
GIANT INTERACTIVE GROUP INC (GA): Free Stock Analysis Report
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