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.
AUTODESK INC (ADSK): Free Stock Analysis
BROCADE COMM SY (BRCD): Free Stock Analysis
RIVERBED TECH (RVBD): Free Stock Analysis
SILVER SPRING (SSNI): Free Stock Analysis
To read this article on Zacks.com click here.
One such stock that you may want to consider dropping is
Silver Spring Networks, 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 #5
(Strong Sell) further confirms weakness in SSNI.
A key reason for this move has been the negative trend in
earnings estimate revisions. For the full year, we have seen 3
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 86 cents a share a month ago to its
current level of 49 cents.
Also, for the current quarter, Silver Spring has seen 1 downward
estimate revision versus no revision in the opposite direction,
dragging the consensus estimate down to a loss of 6 cents a share
from 15 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the
share price has dropped 26.4% 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 computer network sector, you
may instead consider some better-ranked stocks including
Brocade Communications Systems, Inc.
Riverbed Technology, Inc.
). While Autodesk carries a Zacks Rank #1 (Strong Buy), Brocade
Communications and Riverbed Technology holds a Zacks Rank #2
(Buy) and may be better selections at this time.
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 report >>