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
Kythera Biopharmaceuticals, 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 #4 (Sell)
further confirms weakness in KYTH.
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, with no upward revision. The trend
has caused the consensus estimate to trend downward; that is a loss
of $2.34 a share a month ago became wider to its current level of a
loss of $2.75.
Also, for the current quarter, Kythera has seen 1 downward estimate
revision versus no revision in the upside, dragging the consensus
estimate down to a loss of 66 cents a share from a loss of 47 cents
over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the
share price has dropped 23% 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 Medical sector, you may instead
consider some better-ranked stocks including
Alexion Pharmaceuticals, Inc.
ANI Pharmaceuticals, Inc.
). All these of these carry a Zacks Rank #1 (Strong Buy) and may be
better selections at this time.
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ALKERMES INC (ALKS): Free Stock Analysis Report
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KYTHERA BIOPHRM (KYTH): Free Stock Analysis
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