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 EZCORP, Inc. (EZPW), 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 EZPW.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen no revisions on either side. However, the consensus estimate trend has moved lower, going from $1.45 a share a month ago to its current level of $1.25.
Also, for the current quarter, EZCORP has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 26 cents a share from 33 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.01% 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 Financial Loans sector, you may instead consider some better-ranked stocks including Capital One Financial Corporation (COF) and Cash America International, Inc. (CSH). Investors interested in the broader Finance industry may consider AmTrust Financial Services, Inc. (AFSI). While AmTrust Financial Services carries a Zacks Rank #1 (Strong Buy), Capital One Financial and Cash America International carry a Zacks Rank #2 (Buy) and may be better selections at this time.
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EZCORP INC CL A (EZPW): Free Stock Analysis Report
CAPITAL ONE FINL CORP (COF): Free Stock Analysis Report
CASH AMER INTL INC (CSH): Free Stock Analysis Report
AMTRUST FINANCIAL SERVICES INC (AFSI): Free Stock Analysis Report
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