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Weakness Seen in Belmond Ltd. (BEL) Estimates: Should You Stay Away?

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 Belmond Ltd. (BEL), 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/ Sell) further confirms weakness in BEL.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from 12 cents a share a month ago to its current level of 7 cents.

Also, for the current quarter, Belmond Ltd. has seen 1 downward estimate revision versus 1 revision in the opposite direction, dragging the consensus estimate down to 16 cents a share from 18 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 18.2% 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 Hotels & Motels sector, you may instead consider some better-ranked stocks including The Marcus Corporation (MCS), Choice Hotels International Inc. (CHH) and Hilton Worldwide Holdings Inc. (HLT). While The Marcus Corporation carries Zacks Rank #1 (Strong Buy), Choice Hotels International Inc. and Hilton Worldwide Holdings Inc. carry Zacks Rank #2(Buy) and may be better selections at this time.

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BELMOND LTD (BEL): Free Stock Analysis Report

MARCUS CORP (MCS): Free Stock Analysis Report

CHOICE HOTELS INTL INC (CHH): Free Stock Analysis Report


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