Why Is RLI Corp. (RLI) Up 3.4% Since Last Earnings Report?
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 Amerisafe, Inc. AMSF, 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 AMSF.
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 just no upward revisions. This trend has caused the consensus estimate to trend lower, going from $3.55 a share a month ago to its current level of $3.22.
Also, for the current quarter, Amerisafe has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 73 cents a share from 88 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.4% in the past month.
AMERISAFE, Inc. Price and Consensus
AMERISAFE, Inc. Price and Consensus | AMERISAFE, 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 Accident and HealthInsurance industry, you may instead consider a better-ranked stock – Aflac Incorporated AFL. The stock currently holds a Zacks Rank #2 (Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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
Aflac Incorporated (AFL) : Free Stock Analysis Report
AMERISAFE, Inc. (AMSF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research