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 Asanko Gold Inc. AKG, 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 AKG.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen two 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 17 cents a share a month ago to its current level of 7 cents.
Also, for the current quarter, Asanko Gold has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to break even from 6 cents per share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 41.2% in the past month.
Asanko Gold Inc. Price and Consensus | Asanko Gold Inc. Quote
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 Mining - Gold industry, you may instead consider a better-ranked stock - Golden Star Resources Ltd. GSS. The stock currently sports a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Asanko Gold Inc. (AKG) : Free Stock Analysis Report
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