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Weakness Seen in Civitas Solutions (CIVI) Estimates: Should You Stay Away?

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 Civitas Solutions, Inc.CIVI , 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 CIVI.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen three 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 76 cents a share a month ago to its current level of 70 cents.

Also, for the current quarter, Civitas Solutions has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 19 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 10.7% in the past month.

Civitas Solutions, Inc. Price and Consensus

Civitas Solutions, Inc. Price and Consensus | Civitas Solutions, 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 Services industry, you may instead consider a better-ranked stock - Biocept, Inc. (BIOC). The stock currently holds a Zacks Rank #2 (Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .

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Civitas Solutions, Inc. (CIVI): 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.