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 Sonus Networks, Inc. (SONS), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current year. A Zacks Rank #4 (Sell) further confirms weakness in SONS.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have not seen any estimate moving up or down in the past 30 days. But the consensus estimate has trended lower, going from a loss of 2 cents a share a month ago to its current level of loss of 3 cents.
For the current quarter, Sonus Networks has not seen any estimate revision, and the consensus estimate has been flat at a loss of 3 cents a share over the past 30 days.
The stock has also seen some pretty dismal trading lately, as the share price has dropped 14.2% 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 Wireless Equipment industry, you may instead consider some better-ranked stocks including Juniper Networks, Inc. (JNPR), Nokia Corporation (NOK) and ShoreTel, Inc. (SHOR). All these stocks hold a Zacks Rank #1 (Strong Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.
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SONUS NETWORKS INC (SONS): Free Stock Analysis Report
JUNIPER NETWORKS INC (JNPR): Free Stock Analysis Report
NOKIA CORP (NOK): Free Stock Analysis Report
SHORETEL INC (SHOR): Free Stock Analysis Report
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