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 #5 (Strong Sell)
further confirms weakness in BIDU.
A key reason for this move has been the negative trend in earnings
estimate revisions. For the full year, we have seen 7 estimates
moving down in the past 30 days, compared to no upward revision.
This trend has caused the consensus estimate to trend lower, going
from $6.57 a share a month ago to its current level at $5.40.
Also, for the current quarter, Baidu has seen 1 downward estimate
revisions versus no revision in the opposite direction, dragging
the consensus estimate to 94 cents a share from $1.09 over the past
The stock also has seen some pretty dismal trading lately, as the
share price has dropped 12% 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 Internet Services industry, you
may instead consider some better-ranked stocks including
Akamai Technologies, Inc.
Interxion Holding NV
). All these stocks carry a Zacks Rank #2 (Buy) and may be better
selections at this time.
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