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 Intrexon Corporation XON, 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 XON.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen five 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 a loss of 84 cents a share a month ago to its current level of a loss of $1.06.
Also, for the current quarter, Intrexon has seen three downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to a loss of 31 cents a share from a loss of 19 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 15.8% in the past month.
Intrexon Corporation Price and Consensus
Intrexon Corporation Price and Consensus | Intrexon Corporation 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-Services industry, you may instead consider a better-ranked stock – PRA Health Sciences, Inc. PRAH. 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 (Strong Buy) stocks here
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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
Intrexon Corporation (XON) : Free Stock Analysis Report
PRA Health Sciences, Inc. (PRAH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research