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Why Monster Worldwide (MWW) Could Be Positioned for a Slump

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 Monster Worldwide, Inc. (MWW), 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 MWW.

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, with no upward revision. This trend has caused the consensus estimate to trend lower, going from 20 cents a share a month ago to its current level of 3 cents.

Also, for the current quarter, Monster Worldwide has seen 2 downward estimates revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 3 cents a share from a gain of 6 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.3% 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 Computer and Technology sector, you may instead consider some better-ranked stocks including eLong Inc. (LONG), Expedia Inc. (EXPE) and GrubHub Inc. (GRUB). All these stocks hold a Zacks Rank #2 (Buy) and may be better selections at this time.

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MONSTER WORLDWIDE INC (MWW): Free Stock Analysis Report

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EXPEDIA NEW (EXPE): Free Stock Analysis Report

GRUBHUB INC (GRUB): Free Stock Analysis Report

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