What Falling Estimates & Price Mean for Cyan (CYNI) - Tale of the Tape

By
A A A

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 Cyan, Inc. ( CYNI ), 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 CYNI.

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 revision. This trend has caused the consensus estimate to trend lower, going from loss of 66 cents a share a month ago to its current level of earnings loss of $1.08.

For the current quarter, Cyan has seen no downward or upward estimate revision. However, the consensus estimate has widened to a loss of 32 cents a share from loss of 23 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.16% 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 Computer & Technology sector, you may instead consider some better-ranked stocks including Crown Castle International Corp. ( CCI ), Mistras Group, Inc. ( MG ) and j2 Global, Inc. ( JCOM ). All these stocks hold a Zacks Rank #1 (Strong 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 >>




CROWN CASTLE (CCI): Free Stock Analysis Report

CYAN INC (CYNI): Free Stock Analysis Report

J2 GLOBAL INC (JCOM): Free Stock Analysis Report

MISTRAS GROUP (MG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



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: CCI , CYNI , JCOM , MG

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%
100%
100%
100%

Most Active by Volume

36,744,974
  • $13.785 ▼ 4.27%
35,783,515
  • $45.76 ▲ 1.64%
29,994,355
  • $13.065 ▲ 7.89%
22,528,338
  • $104.97 ▲ 0.13%
20,506,116
  • $11.31 ▲ 4.43%
18,811,618
  • $19.5199 ▼ 15.57%
17,497,048
  • $16.63 ▲ 0.18%
17,172,643
  • $98.26 ▲ 0.45%
As of 10/24/2014, 12:10 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com