What Falling Estimates & Price Mean for American Public (APEI) - 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 American Public Education, Inc. ( APEI ), 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 APEI.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 9 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 $2.69 a share a month ago to its current level of $2.27.

Also, for the current quarter, American Public has seen 6 downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 47 cents a share from 71 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.4% 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 to wait.

If you are still interested in the Schools industry, you may instead consider some better-ranked stocks including Strayer Education Inc. ( STRA ), New Oriental Education & Technology Group Inc. ( EDU ) and TAL Education Group ( XRS ). While Strayer holds a Zacks Rank #1 (Strong Buy), New Oriental and TAL carry a Zacks Rank #2 (Buy). With favorable Zacks Ranks, these stocks may be better selections at this time.

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AMER PUB EDUCAT (APEI): Free Stock Analysis Report

NEW ORIENTAL ED (EDU): Free Stock Analysis Report

STRAYER EDUC (STRA): Free Stock Analysis Report

TAL EDUCATN-ADR (XRS): 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: APEI , EDU , STRA , XRS

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