What Falling Estimates & Price Mean for Bridgepoint Education (BPI) - Tale of the Tape

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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 Bridgepoint Education, Inc. ( BPI ), 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 BPI.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 5 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 66 cents a share a month ago to its current level of46 cents.

For the current quarter, Bridgepoint has seen 4 downward estimate revisions versus no revision in the opposite direction dragging the consensus estimate down to 6 cents a share from 31cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 21.65% 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 Schools industry, you may instead consider some better-ranked stocks including TAL Education Group ( XRS ), Strayer Education Inc. ( STRA ) and Bright Horizons Family Solutions, Inc. ( BFAM ). Among these stocks TAL and Strayer hold a Zacks Rank #1 (Strong Buy) and Bright Horizons holds a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.

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BRIGHT HORZN FS (BFAM): Free Stock Analysis Report

BRIDGEPOINT EDU (BPI): Free Stock Analysis Report

STRAYER EDUC (STRA): Free Stock Analysis Report

TAL EDUCATN-ADR (XRS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: BFAM , BPI , STRA , XRS

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