Weakness Seen in STAAR Surgical (STAA) Estimates: Should You Stay Away? - 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 STAAR Surgical Company ( STAA ) 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 STAA.    

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 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 27 cents a share a month ago to its current level of a 22 cents.

Also, for the current quarter, STAAR Surgical Company has seen 1 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 4 cents a share from 5 cents over the past 30 days.    

The stock also has seen some pretty dismal trading lately, as the share price has dropped 20.3% 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 health care sector, you may instead consider some better-ranked stocks including Align Technology Inc. ( ALGN ), CR Bard Inc. ( BCR ) and Becton, Dickinson and Company ( BDX ).  All these stocks carry a Zacks Rank #2 (Buy) and may be better selections at this time.  

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ALIGN TECH INC (ALGN): Free Stock Analysis Report

BARD C R INC (BCR): Free Stock Analysis Report

BECTON DICKINSO (BDX): Free Stock Analysis Report

STAAR SURGICAL (STAA): 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: ALGN , BCR , BDX , STAA

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