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Weakness Seen in Anika Therapeutics (ANIK) Estimates: Should You Stay Away?


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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 Anika Therapeutics, Inc. ANIK , 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 #5 (Strong Sell) further confirms weakness in ANIK.

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 $1.55 a share a month ago to its current level of $1.08.

Also, for the current quarter, Anika Therapeutics has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 29 cents a share from 43 cents over the past 30 days.   

The stock has also seen some pretty dismal trading lately, as the share price has dropped 13.3% in the past month.

Anika Therapeutics Inc. Price and Consensus

Anika Therapeutics Inc. Price and Consensus | Anika Therapeutics Inc. 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 Medical - Biomedical and Genetics industry, you may instead consider a better-ranked stock - Genomic Health, Inc. GHDX . 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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Genomic Health, Inc. (GHDX): Free Stock Analysis Report

Anika Therapeutics Inc. (ANIK): 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 Nasdaq, Inc.



This article appears in: Investing , Investing Ideas , Stocks
Referenced Symbols: GHDX , ANIK


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