Time to Focus on O'Reilly Automotive (ORLY) for Strong Earnings Growth Potential
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 Banco Macro S.A. BMA, 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 BMA.
A key reason for this move has been the negative trend in earnings estimates 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 $9.21 a share a month ago to its current level of $8.65.
Also, for the current quarter, Banco Macro has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to $1.64 a share from $2.22 over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 23.7% in the past month.
Banco Macro S.A. Price and Consensus
Banco Macro S.A. Price and Consensus | Macro Bank 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 Banks-Foreign industry, you may instead consider a better-ranked stock - The Bank of N.T. Butterfield & Son Limited NTB. 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 (Strong Buy) Rank stocks here.
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Bank of N.T. Butterfield & Son Limited (The) (NTB) : Free Stock Analysis Report
Macro Bank Inc. (BMA) : Free Stock Analysis Report
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