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 Endologix Inc. (ELGX), 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 ELGX.
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, with no upward revision. This trend has caused the consensus estimate to trend lower, worsening from a loss of 1 cent a share a month ago to its current level of 24 cent per share.
Also, for the current quarter, Endologix has seen 1 downward estimate, with no revision in the upside, dragging the consensus estimate to a loss of 8 cents a share from a loss of 2 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 14.3% 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 sector, you may instead consider some better-ranked stocks including Align Technology Inc. (ALGN), CR Bard Inc. (BCR) and Becton, Dickinson and Company (BDX). All these stocks hold a Zacks Rank #2 (Buy) and may be better selections at this time.
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ENDOLOGIX INC (ELGX): Free Stock Analysis Report
ALIGN TECHNOLOGY INC (ALGN): Free Stock Analysis Report
CR BARD INC (BCR): Free Stock Analysis Report
BECTON DICKINSON & CO (BDX): Free Stock Analysis Report
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