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 CECO Environmental Corp. CECE
, 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 CECE.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen two 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 81 cents a share a month ago to its current level of 68 cents.
Also, for the current quarter, CECO Environmental Corp. has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 18 cents a share from 21 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 28.8% in the past month.
CECO Environmental Corp. Price and Consensus
CECO Environmental Corp. Price and Consensus | CECO Environmental Corp. Quote
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 Pollution Control industry, you may instead consider a better-ranked stock - Landauer, Inc. LDR . The stock currently sports a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank stocks here .
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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 CECO Environmental Corp. (CECE): Free Stock Analysis Report Landauer, Inc. (LDR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research