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 Full House Resorts Inc.
), 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 FLL.
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 30 days, compared with no upward revision. This trend has caused the loss estimate to widen, going from 6 cents a share a month ago to its current level of 9 cents.
Also, for the current quarter, Full House Resorts has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 4 cents a share from 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 19.1% 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 Consumer Discretionary sector, you may instead consider some better-ranked stocks including 500.com Limited ( WBAI
), Cablevision Systems Corporation ( CVC
) and Royal Caribbean Cruises Ltd. ( RCL
). All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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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 reportFULL HOUSE RESO (FLL): Free Stock Analysis Report500.COM LTD-A (WBAI): Free Stock Analysis ReportROYAL CARIBBEAN (RCL): Free Stock Analysis ReportCABLEVISION SYS (CVC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research