U.S. Markets open in 3 hrs 30 mins

What Falling Estimates & Price Mean for Yirendai (YRD)

Zacks Equity Research
1 / 2

Will Product Innovations Aid Canopy Growth (CGC) in Q2?

Canopy Growth (CGC) is expected to benefit from a solid top-line contribution in the Canadian medical cannabis market.

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 Yirendai Ltd. YRD, 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 YRD.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one 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 $4.85 a share a month ago to its current level of $2.41.

Also, for the current quarter, Yirendai has seen one downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 55 cents a share from $1.15 over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.2% in the past month.

Yirendai Ltd. Price and Consensus

Yirendai Ltd. Price and Consensus | Yirendai Ltd. 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 Internet - Services industry, you may instead consider a better-ranked stock - Autohome Inc. ATHM. The stock currently holds 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.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


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
 
Autohome Inc. (ATHM) : Free Stock Analysis Report
 
Yirendai Ltd. (YRD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.