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
), 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 SPLS.
A key reason for this move has been the negative trend in earnings
estimate revisions. For the full year, we have seen 10 estimates
moving down in the past 30 days, compared with no upward revisions.
This trend has caused the consensus estimate to trend lower, going
from $1.31 a share a month ago to its current level of $1.17.
Also, for the current quarter, Staples has seen 7 downward estimate
revisions versus no revisions in the opposite direction, dragging
the consensus estimate down to 21 cents a share from 27 cents over
the past 30 days.
The stock also has seen some pretty dismal trading lately, as the
share price has dropped 12.1% 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
If you are still interested in the retail sector, you may instead
consider some better-ranked stocks including
Barnes & Noble, Inc.
). While Barnes & Noble holds a Zacks Rank #1 (Buy), ITOCHU
Corporation and Kingfisher plc hold a Zacks Rank #2 (Buy).
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STAPLES INC (SPLS): Free Stock Analysis Report
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