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Why WidePoint Corp (WYY) 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 WidePoint Corp. (WYY), 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 WYY.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 60 days, compared with just no upward revisions. This trend has caused the consensus estimate to trend lower, going from the break even point two months ago to its current level of a loss of 1 cent.

Also, for the current quarter, WidePoint Corp has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 1 cent a share from the break even point over the past 60 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.1% 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 Services sector, you may instead consider some better-ranked stocks including Carbonite, Inc. (CARB), NCI, Inc. (NCIT) and Syntel, Inc. (SYNT). All these stocks hold a Zacks Rank #2 (Buy) and may be better selections at this time.

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WIDEPOINT CORP (WYY): Free Stock Analysis Report

CARBONITE INC (CARB): Free Stock Analysis Report

NCI INC (NCIT): Free Stock Analysis Report

SYNTEL INC (SYNT): Free Stock Analysis Report

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