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 BioScrip, Inc. BIOS , 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 BIOS.
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 a loss of 21 cents a share a month ago to its current level of a loss of 24 cents.
Also, for the current quarter, BioScrip has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 11 cents a share from a loss of 9 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 8.1% in the past month.
BioScrip, Inc. Price and Consensus
BioScrip, Inc. Price and Consensus | BioScrip, 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 - Outpatient and Home Healthcare industry, you may instead consider a better-ranked stock - Envision Healthcare Corporation EVHC . The stock currently holds 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 Envision Healthcare Corporation (EVHC): Free Stock Analysis Report BioScrip, Inc. (BIOS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research