U.S. Markets close in 4 hrs 46 mins

What Falling Estimates & Price Mean for Blucora (BCOR)

Zacks Equity Research

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 Blucora, Inc. (BCOR) 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 BCOR.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared to no upward revision. This trend has caused the consensus estimate to trend lower, going from $2.41 a share a month ago to its current level of $2.12.

Also, for the current quarter, Blucora has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 99 cents a share from $1.13 a share over the past 30 days.   

The stock has also seen some pretty dismal trading lately, as the share price has dropped 22.9% 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 Internet Services industry, you may instead consider some better-ranked stocks including Baidu, Inc. (BIDU), Interxion Holding NV (INXN) and Akamai Technologies, Inc. (AKAM). While Baidu and Interxion hold a Zacks Rank #1 (Strong Buy), Akamai carries a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

BLUCORA INC (BCOR): Free Stock Analysis Report

BAIDU ADS (BIDU): Free Stock Analysis Report

INTERXION HOLDING NV (INXN): Free Stock Analysis Report

AKAMAI TECHNOLOGIES INC (AKAM): Free Stock Analysis Report

Zacks Investment Research