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 OncoMed Pharmaceuticals, Inc. (OMED) 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 OMED.
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 revisions. This trend has caused the consensus estimate to trend lower, going from 3 cents a share a month ago to its current level of a loss of 49 cents a share.
Also, for the current quarter, OncoMed Pharmaceuticals has seen no estimate revisions on the either side. However, the consensus loss estimates have moved up to 16 cents from a loss of 12 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 31.0% 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 health care sector, you may instead consider some better-ranked stocks including Amgen Inc. (AMGN), Myriad Genetics Inc. (MYGN) and ANI Pharmaceuticals, Inc. (ANIP). All these stocks holds a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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ONCOMED PHARMACEUTICALS INC (OMED): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
MYRIAD GENETICS INC (MYGN): Free Stock Analysis Report
ANI PHARMACEUTICALS INC (ANIP): Free Stock Analysis Report
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