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 Crinetics Pharmaceuticals, Inc. CRNX, 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 CRNX.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen four 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 a loss of $1.92 per share a month ago to its current level of a loss of $2.05 per share.
Also, for the current quarter, Crinetics Pharmaceuticals has seen two downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to a loss of 54 cents per share from a loss of 49 per share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.7% in the past month.
Crinetics Pharmaceuticals, Inc. Price and Consensus
Crinetics Pharmaceuticals, Inc. price-consensus-chart | Crinetics Pharmaceuticals, 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 Medical - Drugs industry, you may instead consider a better-ranked stock - FibroGen, Inc FGEN. 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.
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